Labour-Related Laws and the MSE Growth Trap in India, Nepal, Sri Lanka and Bangladesh

Dialogue amongst ILO constituents and other stakeholders on required improvements and simplification of labour-related laws and their implementation leading towards greater job creation potentialities. Three studies in India were conducted on: macro-level analysis of the impact (direct and indirect) of labour laws on MSEs; micro-level assessment of costs and benefits of doing business (labour and non labour laws) on MSEs; and ways of enhancing compliance of labour laws (sanctions and incentives) by MSEs Indian component. Technical Advisory Group guiding preparation of India studies.

The goal of this subregional programme is to contribute to a policy and legal environment conducive to the growth of micro and small enterprises in India, Nepal, Sri Lanka and Bangladesh, with a two-fold objective:

  • To enhance the understanding of the ILO’s partners on the impact of labour-related laws on the growth of micro and small enterprises in the context of the overall business environment in the four countries involved as well as the limitations of the present inspection systems and ways to improve compliance; and
  • To support stakeholders in informed discussions on labour-related laws and business environment in different countries.

The implementation strategy includes studies, field surveys and dialogue with stakeholders on required improvements and simplification of labour-related laws and their implementation leading to improved job creation through higher enterprise performance.