Investment blockage will adversely affect job creation, says FM Arun Jaitley

In the wake of labour unions opposing the proposed reforms, Finance Minister Arun Jaitley has requested them not to support such ideas which harm economic activity and affect job creation, reported PTI.

A day after a ministerial panel headed by Jaitley failed to end logjam over the recommended labour reforms with unions, he said safety of workforce cannot be ensured without an increase in economic activity.

Addressing the 46th Indian Labour Conference in Delhi, the finance minister said that if investments were blocked, it will adversely affect the job creation, according to the news agency.

"If we stop the fountain of investment, then employment will not increase, then economic activity will also not increase. And it becomes a threat to existing jobs," he said.

"The government is trying that when the entire global economy is in a slowdown, our economy is strengthened. Today we are proud that in this slow environment, when all the countries are struggling, India is the fastest growing economy among other economies," the FM said.

Reaching out to unions on government's proposed labour reforms that will make it easier for companies to do business, Jaitley said: "Even if we are a leader of any union or a worker of any organisation, we should not decide on anything which would deter the economic activity or employment opportunities."

According to him, high growth rate will always protect the workmen and interest of labour in the country.

"An efficient economy will always protect the interest of industry and labourers. Sluggish industry will never be able to create jobs, it is only efficient industry which will be able to create jobs.

"Rational taxation system will be able to create jobs. An overloaded taxation system will not be able to create jobs. Efficient industries will be able to take higher wages and rich government will be able to provide higher wages and better social security. So it is all our responsibility so that we take the economy to that direction," he said.

In its latest report, the International Monetary Fund (IMF) had retained India's growth projection for 2015 at 7.5% but lowered the global economy growth forecast to 3.3%.

(Image: Indiatimes)