Labour reforms in developing nations have played a crucial role in fostering inclusive growth and formal employment. It has been particularly evident in countries such as Vietnam, Indonesia, and Brazil, where the 2019 Labour Code, 2020 Omnibus Law, and 2017 Labour Reform, respectively, have modernised labour markets, attracted investment, and enhanced productivity (World Bank, 2023; OECD, 2022; ILO, 2021). The 2019 labour amendments in Mexico enhanced trade compliance and elevated worker rights (IMF, 2022). Collectively, these reforms demonstrate that well-structured labour policies in developing economies can enhance competitiveness, promote formalisation, and ensure equitable growth, objectives that align closely with India’s current reform trajectory.

As India approaches 2026, on the verge of becoming one of the world’s fastest-growing major economies, the momentum for comprehensive labour market reform has become increasingly vital. The Labour Codes, enacted between 2019 and 2020, are central to this transformation, designed to build a modern, transparent, and equitable labour ecosystem. By consolidating 29 fragmented and outdated laws into four coherent frameworks, the Code on Wages (2019), Social Security Code (2020), Industrial Relations Code (2020), and Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). India aims to simplify compliance, promote formalisation, and strengthen worker protection (Ministry of Labour & Employment, 2020).

This comprehensive overhaul is a legal and economic necessity, addressing structural challenges such as informal employment and inadequate social security coverage. These reforms seek to create a more efficient and business-friendly environment by improving compliance mechanisms and expanding labour rights while upholding worker welfare.

According to the Economic Survey 2024-25, India’s projected 6.4% real GDP growth for FY25 underscores the crucial role of these reforms in enhancing resilience and productivity. In a labour market where over 90% of workers remain in the unorganised sector (Press Information Bureau Release, 2025), the New Labour Codes represent not merely administrative changes, but a paradigm shift towards inclusive and sustainable growth. As implementation advances, these reforms are poised to serve as a cornerstone of........

© News18