The government is to launch a new initiative with the approval of a policy aimed at boosting manufacturing activity by reducing compliance cost for the industry bringing in more flexibility on labour laws.
According to the draft which is likely to get a high level committee's nod, the government would take steps to make available industrial land with the creation of land banks. The committee is chaired by prime minister Manmohan Singh.
The policy, aims to create 100 million new jobs by 2025. It would encourage foreign investment and technologies, while reducing the compliance burden on the industry, according to a source.
According to the source this would be done through rationalisation of business regulations. He added that a comprehensive exit policy had been conceptualised which would promote productivity and provide flexibility by removing rigidity in the labour market.
However, the protection of workers' right would be ensured, he said adding new labour management norms would encourage "unwritten rules" for the unions and employers.
He added that the stress would be on modification in employment laws and shop floor practices.