Article: Impact of the proposed labour reforms

Strategic HR

Impact of the proposed labour reforms

Here's how the proposed labour law reforms will impact the job market in India

Since decades, Indian politics was being run by fractured coalitions making it difficult to implement changes of such magnitude like the labour reforms proposed by the current government. If Modi government is successful in delivering the same as planned, India is set to create 100 million new jobs in the manufacturing sector within the next decade.

The proposed labour overhaul aims to boost the manufacturing industry by modernizing it with new technologies & infrastructure investment. The resultant global demand for Indian manufacturers will lead to millions of new jobs being created for Indian as well as foreign citizens.

By roping in new manufacturing units, the government also aims to encourage the spirit of entrepreneurship. As per the vision of the new government, India shall strive to export finished products instead of raw materials; like exporting steel instead of iron ore or textile instead of cotton.

The overhaul proposes easing out of labour laws by implementing flexible overtime for workers & eliminating the 1948 law which prohibits women from working at night in factories. Positive changes for the workers like the proposed standardization of wages and increase in the frequency of salary revisions have been received well by the worker unions and will only benefit them in the long run.

Technology-driven processes shall reduce the burden of the government and simultaneously empower the employees & employers. This will also make decision-making transparent & tracking of industries easier. Rebuilding the infrastructure shall modernize the existing manufacturing units & create even more jobs for the country in doing so.

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Topics: Strategic HR, #Jobs

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