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India is a hostile habitat for job creation. The agenda to catalyse it includes urbanisation (we have only 50 cities with more than a million people compared to China's 350), infrastructure (projects worth an estimated Rs 7,00,000 crore are stuck), growth of low skill manufacturing (this is stuck at 15 percent of employment since 1991), labour law reform (employers will toms outlet store hesitate to raise formal employment as long as it stays the equivalent to marriage without divorce), and a revamp of the employee benefits regime (48 percent mandatory payroll confiscation means 100 percent of net job creation since 1991 has happened informally). This 'benefits revamp' must include creating competition either public or private to the poor value for money pensions and healthcare offered by the EPFO (the world's most expensive government securities mutual fund) and ESI (a horrendous insurance scheme that only pays out 50 percent of contributions as benefits) that reinforce employee preference for informal employment..
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