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Monday, June 1, 1998

Business Briefing 

 
Hike in minimum wages irks businessmen

A government notification increasing minimum wages for unskilled labourers by Rs 153 per month has raised the heckles of Delhi-based industrialists. The increase is applicable from February 1.

J R Jindal, president, Delhi Factory Owner's Federation (DFOF), said that as the minimum wages in Delhi is the highest in the country the additional burden would make things worse for the businessmen. If the wages go on increasing at this pace, industries which are already reeling under the burden of heavy taxation, power crisis and lack of infrastructural facilities will find it difficult to exist, added Jindal.

The DFOF has made representations to the government requesting it to re-consider its decision.

Link-up with Asean to help industry

Indian small industry must export to survive and it will do better if it links up with the rest of the world, said a visiting delegate at a roundtable meet to promote Indo-Asean trade in the capital recently. Aseanmembers have successfully established themselves in international trade. There is lot of scope for expanding trade between the two, said an Indian official.

India's trade with Asean has registered a significant increase over the years, from US$77 million in 1971 to over 6 million in 1996-97. India has set a trade target of $15 billion with Asean by the year 2000.

India's main exports to Asean includes agricultural items, engineering products, textile and fabrics, drugs and pharmaceuticals, semi-finished iron and steel and fine chemicals. According to a delegate from Malaysia, the multimedia supercorridor being set up in their country offers lot of business opportunities for Indian software development and training companies. The Philippines too gives incentives to small and medium sized enterprises, said a delegate from that country and encourages their link-up with counterparts in other countries. Laos offers excellent export opportunities to Indian companies in agro-products, farm machinery such astractors, water and electricity pumps, etc. The Sultanate of Brunei is already using Indian manpower in training and service industry. There, however, remains a lot of potential in the tourism sector for Indian enterprises to tap, felt a delegate from that country.

-- Contributed by Jyoti Mukul, Amiti Sen & Sudipto Dey

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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