Obsolate labour laws and the outdated IT sector in India determines the future and growth of Indian economy

New Delhi, July 19: The outdated labour laws and the outdated IT sector of the country are the real reason for many of the hindrances in Indian economy.

The Labour Act prohibits women in manufacturing industry from working during the night.

Instead of the prohibition, the law makers must ensure the safety of the women workers.

They are really forgetting the fact that women are having equal rights in the society.

The Indian economic growth is basically depended on certain facts like regulations in the tax, tax rates, corruption in all sectors as well as bureaucracy.

And thus the economic growth is being hindered due to the same.

Along with other areas, the IT sector is also at risk due to many reasons. The underperformed shares of the Indian IT companies could be the best proof for the challenges it currently face.

Our IT companies are under performed when compared to those based in other countries.

Ajay Bagga,  a veteran market expert opines that the Indian IT companies are heading towards a further de-rating.

“We have been waiting and watching what IT companies will do with the new start ups and the shard economy.

He had also criticised the way the Indian It companies are managing their huge income.

“The IT companies are resting on Rs. 30000 crore, buying the government of India bonds.

You are bringing down the return on equity, you don’t return anything to shareholders by giving good dividends or through share buybacks”, he said.

“So why should we give IT companies premium valuations?” Mr. Bagga asked. “IT companies ars outdated as far as technology goes, don’t do anything with cash flows nor are they doing any cutting edge work trying to be nimble like a small company”.

‘’IT sector will see a further de-rating and there is no big driver coming. Neither they are doing big data, analytics, cloud or internet of things.’’ Mr.Bagga said.