NEW DELHI (Reuters) – India’s government on Wednesday set up a task force to tackle a growing problem of cheap goods and a shortage of labour that is hurting the economy.

The government is also expected to introduce new legislation to make it easier for companies to hire more workers from abroad.

The initiative follows the resignation of Prime Minister Narendra Modi in June and the appointment of new finance minister Arun Jaitley.

India has long been struggling to address the impact of a weak economy on its manufacturing sector, which has suffered from low commodity prices and stagnant demand from global markets.

It has also been hit by high inflation that has forced it to spend huge amounts on subsidies.

The country’s manufacturing sector accounts for around 10 percent of gross domestic product and employs around 10 million people, but most of them are employed in services or in the retail and wholesale sectors.

The issue has come under scrutiny since Modi became prime minister in May 2015.

The government had promised to invest $1 trillion in the sector, but Modi’s government cut it to $700 billion.