India: Trade union risk to privatizations

  • The government's determination to push privatization and labour law reforms is provoking a strong trade union reaction that will continue into 2020
  • The government should eventually prevail, but trade unions and opposition parties could impede and delay key privatizations, making projected revenues in FY20 and FY21 seem optimistic
  • Internal opposition from Hindu nationalist trade unions could contribute to the toning down of the more ambitious labour law changes
  • There is some risk that trade unions could join forces with the student-led protests to generate a broader movement, but we believe it is more likely they will maintain a narrow focus on opposing reforms

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