However, I would presently demonstrate how the Reserve Bank, instead of adopting any well-trodden course of action, customized its response, keeping in view the sector-specific problems. I would then review the impact of RBI’s approach and strategies for the UCBs and also discuss the ongoing efforts for strengthening the sector.
The labour force is not being fully utilised owing mainly to labour market rigidities. But now we should not overlook the fact that initiatives have been taken to reform the German labour market. There can be no doubt that the labour market has recently become more flexible both with respect to its institutional framework and as regards collective wage bargaining and working hours.