Liberalisation and Industrial Relations

The primary conditions for the creation of international division of labour are the availability of cheap labour, an efficient telecommunication system, a worldwide mobilisation of capital and development of multilateral institutions. The process of liberalisation currently under way is directed at creating these conditions. The restructuring of industry, changes in the business environment and the slackening of labour laws in India have to be seen as part of the effort to put a new international division of labour in place.