“Miss the simple truth and you can have endless academic and political debates about why India’s decade and half of economic growth has been a jobless one.”

I am not sure bad labour laws explain jobless growth. I think it is more to do with shedding fat. If Bajaj makes double the two-wheeler volume with few people, it is because of increased productivity.

If companies are allowed to let go of unwanted employees quickly (and start new business and close unworkable business easily), the growth could be higher – 10-12%, agriculture to (unskilled and semi-skilled) manufacturing transition of the economy could be faster (probably avoiding those poor farmers suicides), unemployment would be lower, and poverty reduction faster. But India is moving at a glacial pace with even the talk of reforms shut out recently.

My gut feeling is that more than “hire and fire” policy, it is trade union militantism (coupled with political extortion) which is responsible for the state of manufacturing industry in India

Regards