- Some labour code changes are already in effect in Rajasthan and Gujarat. They offer a glimpse of what may unfold
- It may be more relevant to look at the model put in place by states which went down this path several years ago: Rajasthan and Gujarat. The early indications are not very encouraging
HYDERABAD : The new labour laws are meant to make doing business easier in India. Naturally, the industry has been lobbying for these amendments and they have gotten their way. Workers, meanwhile, have been urging caution, since major changes could leave them totally vulnerable. In an attempt at finding some degree of balance, the new laws do talk about a range of worker rights, from mandatory health check-ups, home visits and emergency aid to written terms for employment.
But the real question is: Will these new codes make any significant difference to India’s diverse and complicated labour markets?
In developing countries like India, labour has historically been unskilled, unempowered and immobile. In the first two decades of economic liberalization, the availability of skilled and unskilled labour enabled India’s fast-paced economic growth. Now, with growth petering out and unemployment rising, the increase in the supply of young labour is causing huge distress to the political economy of reforms.
Source: livemint
