Date:30/04/2007 URL: http://www.thehindubusinessline.com/2007/04/30/stories/2007043002200300.htm

Back `India needs to focus on labour law reform'

Our Bureau

Bangalore April 29 India had a definite competitive edge over the other Asian economies for the manufacturing business as the country has a ready source of raw materials and enjoys a lower labour cost.

Some other Asian countries, where there is not enough steel and also in terms of tooling, have to depend on imports to meet even domestic requirements.

Mr K.K. Swamy, Deputy Managing Director of Toyota-Kirloskar Motor Ltd, India, however, needs to focus more labour reforms apart from maintaining quality and prompt delivery if it needs to compete globally. Poor infrastructure is another area which India needs to work on.

Toyota is confident that India will continue to be a good manufacturing base for the company. It has already set up a 100 per cent EOU for manufacturing transmission gears and has already exported 1.75 lakh units of these to other countries. Toyota believes India holds a huge potential for Japanese companies to set up their manufacturing base here.

India, however needs to focus more on labour reforms apart from maintaining quality and prompt delivery to increase its competitiveness in the global market. Poor infrastructure is another area it needs to work on.