GATE | Sudo GATE 2020 Mock III (24 January 2019) | Question 9

India’s baffling array of state and national labor laws date to the 1940s: one provides for the type and number of spittoons in a factory. Another says an enterprise with more than 100 workers needs government permission to scale back or close. Many Indian businesses stay small in order to remain beyond the reach of the laws. Big firms use temporary workers to avoid them. Less than 15% of Indian workers have legal job security. The new government can sidestep the difficult politics of curbing privileges by establishing a new, simpler labor contract that gives basic protection to workers but makes lay-offs less costly to firms. It would apply only to new hires; the small proportion of existing workers with gold-star protections would keep them.

Which of the following options best summarizes the main idea of the paragraph ?

(A) More Indian workers can get permanent jobs and legal job security if existing labor laws are reformed.
(B) Effective labor law reform can encourage many Indian businesses to grow to more than 100 workers.
(C) Outdated Indian labor laws need to be simplified to provide basic protection to workers and curb privileges.
(D) The difficult politics of curbing privileges can be avoided if the changes in the labor law only apply to the new hires.

Answer: (C)

Explanation: This paragraph is about dated Indian labor laws. It cites some examples highlighting how some aspects of the laws are irrelevant today, how these are affecting both firms and people they employ and suggests a possible solution to the “difficult politics of curbing privileges”.

In summary, the labor laws in India are dated and need to be reformed. A simpler labor contract that gives basic protection to workers while restricting the privileges for new hires and making layoffs less costly to firms is needed.

Option (C) is correct.

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