The nodal agency for the Indian auto component industry said that delay in labor reforms hampers employment generation in the automobile component sector.

Mr Srivats Ram president of Automotive Component Manufacturers Association of India on the sidelines of an industry event told reporters that "We believe that employment will get a boost by labour reforms which is the need at the moment.”

According to Mr Ram, the slow pace of labour reforms hampers the huge opportunity for the country's workforce to be employable in the sector. He added that "We currently employ around a million people directly and another million indirectly and this number is expected to double in the coming time.”

Mr Ram said that for this to happen, reforms are needed.

ACMA further said that the industry was looking forward to a flexible labour policy and that its views on the same are being represented in front of the human resource and labour committees of the planning commission for the twelfth five year plan.

Mr Ram said that "We want a policy that allows us to adjust our work-form as per market economy. In the medium-to-long term there will be ample employment opportunities in the sector and there should not be any uncertainty that it will be a hire and fire policy types.”

The Indian auto component industry currently has 50% of its employees as permanent and the other half on a consultant basis.

(Sourced from ET)