India's population has crossed the one billion mark. Population growth averaged 1.8 percent per year in 1990-97, down from an average of 2.1 percent in 1980-90 and 2.3 percent in the 1960s. More than 90 percent of the Indian workforce works in the informal economy. Although agriculture accounts for about 25 percent of India's GDP, estimates indicate that there has been only 0.6 percent growth in agricultural production in 2000. The share of agriculture in total employment has not fallen equally sharply as has happened in many countries. This share still remains at a high two-thirds.

GDP has been forecast to grow by 5.2 percent in 2000/01 compared to 6.0 percent in 1999/2000, owing in part to the current slowdown in the US and other industrialized countries, and to slowing domestic private consumption resulting from the poor agricultural performance in 2000. Services have seen rapid growth in recent years, with an average annual growth rate of 8 percent in the 1990s. These include sectors such as telecoms, information technology, airlines, banks, construction and small-scale private traders, as well as the public sector, accounting for around 40 percent of the GDP. What has made the boom in services more visible has been a slower growth and complex restructuring of India's manufacturing industry and a virtual stagnation in agriculture.

The size of the fiscal deficit is likely to rise. An increase in unemployment is anticipated in both rural and urban areas. Trade unions have been vocal in making their displeasure known on certain policies and steps taken by the Government, especially on privatisation and liberalization. The need for systematic and timely social dialogue at all levels is quite apparent.

The 2001/02 National Budget presented in March 2001contained many promising proposals to liberalize the economy, cut interest rates and taxes, introduce labour law reforms, increase investments in infrastructure and adopt new approaches in SMEs development. However, some of the proposals are liable to be watered down and progress towards privatization may be hindered by the global economic downturn. Reducing the fiscal deficit is a key policy priority. Simplifying the tax structure and reducing real interest rates is a major policy issue. But more important and politically difficult is a sustained emphasis on disinvestment and a reduction in government subsidies. Further liberalization is likely to increase the role of domestic and foreign-private sector companies but political sensitivities might delay policy changes.

Relations between India and major industrialized countries, particularly the US, have intensified in recent years and they are now on a firm and positive footing. As an increasingly important and liberalizing economy, India is now clearly the dominant influence in South Asia and is treated as such by the G8 countries.

The catastrophic earthquake in Gujarat state - which contributes seven percent to the national GDP - at the end of January resulted in the loss of some 20,000 lives and caused an estimated US$ 2.1 billion worth of damage. The displacement of workers and the damage to infrastructure will affect local production and trade. In the short term private consumption, already constrained by falling rural incomes hit by recent droughts in the state, will be depressed.

The Second National Labour Commission, which began its work in 2000, is expected to present its report towards the end of 2001. The ILO is providing support to the working groups of the Commission. The six working groups cover the substantive areas such as the review of labour legislation, skills development, rural & informal sector umbrella legislation, globalization, women & children and social security.

All three constituents are Governing Body members.

Government ILO GB members from India have played very active role in different ILO fora. Mr. S. Jatiya, Labour Minister, is from the ruling Bharatiya Janata Party. Mr. Vinod Vaish has been appointed Labour Secretary in November 2000 and attended the 280^th Session of the ILO GB and the ILC 2001.

Mr. I.P. Anand, Deputy Member (Employers) of the Governing Body represents the Council of Indian Employers (CIE). The CIE is affiliated to IOE. Mr. Anand is also a member of the Board of the Turin Centre.

Mr. N.M. Adyanthaya, Secretary of the Indian National Trade Union Congress (INTUC), is the Deputy Member (Workers) of the Governing Body. The five main central trade unions in India are AITUC, BMS, CITU, HMS and INTUC. They are all strong supporters of the ILO in international fora.

Technical cooperation, financed by regular and extra-budgetary resources, encompasses a variety of activities. These also include advisory services and policy-level activities covering the informal economy, child labour, employment creation for women and social dialogue. The current portfolio, totalling approximately US$ 20 million, is mainly funded by DANIDA, DFID, US Department of Labor, Italy, Germany, the Netherlands, Norway, AUSAID, UNDCP and UNDP. It includes the following main activities:

Strategic Objective 1: a) Integrated Area-Specific Approaches Against Hazardous and Exploitative Forms of Child Labour; b) Andhra Pradesh State-Based Project for the Elimination of Child Labour; c) Combatting child labour and economic exploitation among adolescents in the sericulture industry in Karnataka; and d) Action against child labour through education and training by teacher organisations through trade union partnership for environmental protection.

In addition to the above on-going projects, programme development work is being completed for the formulation of a jointly funded Government of India/US Department of Labor Child Labour Programme (budget US$ 40 million) which will focus on ten hazardous sectors in four Indian States.

Strategic Objective 2: a) Decent employment for women in India; b) Inter-Regional Programme to Support Self-Reliance of Indigenous and Tribal Communities through Cooperatives and other Self-Help Organizations (INDISCO); c) Pilot project on alternative employment opportunities for beedi workers in Karnataka and Tamil Nadu; d) Prevention of family indebtedness with micro-finance schemes and related services; e) Programme for entrepreneurship development and productivity improvement in Moradabad brassware industry; f) Preparatory assistance to the formulation and launching of an urban informal sector support programme in India; and g) A model programme for social and economic reconstruction in 10 villages in the state of Gujarat.

Strategic Objective 3: a) Community wide drugs demand reduction in India; b) Community wide drugs demand reduction in the North-Eastern states of India; c) Developing a comprehensive strategy for alternative development in illicit opium poppy growing areas of Arunachal Pradesh;and d) HIV/AIDS prevention in the World of Work.

Strategic Objective 4: a) Integration of rural women workers into mainstream trade unions of rural workers organisations; and b) South Asia and Vietnam Project on Tripartism and Social Dialogue in Action (SAVPOT).

Pipeline activities include: an expanded programme for earthquake rehabilitation in Gujarat; a programme on core labour standards and the informal sector; and a project on rural reconstruction using employment-intensive methods in West Bengal.

India has ratified four core Conventions (C.29, C.100, C.105 and C.111). Promotional efforts are underway and advisory services are provided to assist the Indian authorities in the ratification process of C.182.

Promotional activities are being identified in consultation with local partners  to support the initial phase of the development of the Global Compact.