NEW DELHI: The move to revamp labour laws invited stinging criticism from trade unions who say the changes are being introduced at the cost of workers' rights while industry groups cheered the government's initiative saying it will boost investment and create jobs.

While previous governments had promised to reform the country's archaic labour laws, progress had been limited. The Narendra Modi administration is attempting to push through changes in an attempt to attract investment and make it easier to do business in India. It has also promised provisions to protect workers. But trade unions see the latest attempt as a move to curb the freedom of employees. "All the labour law changes being talked about are meant to strengthen the hands of the employers and industrialists and not the workers," said G Sanjeeva Reddy, president of INTUC .

"They are talking about abolishing inspector raj. This is an attempt to allow employers not to implement labour laws. The inspectors ensure that employers comply with various labour laws," Reddy said. Trade unions want the government to consult them before pushing through changes in the country's labour laws. "They are not consulting us. They say they are doing this to attract investment. But they want to make profit at the cost of workers," Reddy said.

Businesspersons are ecstatic and say the measures announced by Modi serve the overall objective of boosting growth, investment and creating jobs.

"If we see the overall direction of measures, including the move to end inspector raj, they are part of the overall aim of generating job opportunities. The objective is to accelerate economic growth," said Ajay Shriram, president of the Confederation of Indian Industry .

"If we have to create 10 million jobs a year for the next 10 years then we have to look at the ease of doing business and really address the issues and the government seems to be doing that," said Shriram.

