For a large number of small producers and workers, globalisation has posed
major challenges.
| In recent years, the central and state governments in India have been taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. SEZs are to have world class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. Government has also allowed flexibility in the labour laws to attract foreign investment. Instead of hiring workers on a regular basis, companies hire workers ‘flexibly’ for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company. However, foreign companies are demanding further flexibility in labour laws. |
Ravi did not expect that he would have to face a crisis in
such a short period of his life as an industrialist. Ravi
took a loan from the bank to start his own company producing
capacitors in 1992 in Hosur, an industrial town in Tamil Nadu.
Capacitors are used in many electronic home appliances including
tube lights, television etc. Within three years, he was able to ex-
pand production and had 20 workers under him
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