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Strengthen local institutions for sustainable growth: ILO Director

Call for ILO support to improve informal sector


Call for ILO support to improve informal sector



It is essential to support local institutions to develop investment plans that focus on sectors which are close to the traditional core competency of the Indian community, said Dagmar Walter, Director, International Labour Organization (ILO) for South Asia and Country Office for India.

Responding, All India Organization of Employers (AIOE) President Rohit Relan has requested ILO to support pilot programmes to improve the condition of the employees and enterprises in the informal sector through different interventions.

“This has the potential of accelerating growth in the shorter time span as it also requires limited upskilling of the local labour force. Strengthening local institutions to improve efficiency is critical for policies and programmes to yield result,” Walter continued.

She was addressing the AIOE (All India Organisation of Employers) National Award for Outstanding Industrial Relations, 2017-18, which organised by FICCI on 31 July 2019.

In a globalised and competitive world, labour markets work best when the institutions that govern them create an environment where income, social and labour protection are ensured for workers, while enterprises are given the room to prosper, she said.

Walter further added that wealth inequality and hierarchical distribution of income in developing countries have long been identified as a growth barrier and sustaining growth requires the mass mobilisation of financial as well as human resources.

“The recent creation of two cabinet committees in India on investment and growth, and employment and skills development is very timely and thus indeed underscores the country?s commitment to address these challenges,” she noted.

Walter also gave top three awards to ITC Agri Business Division (AP); TVS Motors (Hosur) and MRF Limited (Pondicherry) in that order for practicing best industrial relations at their facilities. These were chosen from among 12 shortlisted companies during the AIOE National Award for Outstanding Industrial Relations 2017-18.

India has 90% of the workforce in the informal sector, characterised by low productivity, low quality and decent work deficit, Relan pointed out of the challenges in raising the skill of workforce.


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