Labour Reforms

India reforms only in a crises, has been the succour economists have proffered in gloomy Covid Times. The Uttar Pradesh government has done well to set the ball rolling by approving an ordinance exempting businesses from most labour laws for the next three years. Madhya Pradesh quickly followed suit with similar labour reforms. This should provide meaningful uplift to businesses brutally set back in lockdown which comes on top of pre covid slowdown. From broken supply chains to the return of license raj, it’s scarred landscape. Governments now must go the extr mile to rebuild investor confidence. Taking up long pending reforms is the only way forward

Over 200 state and central labour laws are in no small part responsible for why India’s migrant workers are despairingly trudging its highways today. These statutes are so restrictive that firms are disincentivised from scaling up. Staying small means less regulatory hassle, but more casualisation of the workforce. That’s why more than 90% of the employment remains in the informal sector and most Indian enterprises remain small or micro. The laws that on paper provide for worker’s security end up killing their formal job prospects. Countries like China and South Korea enjoyed decades of miracle growth thanks to high levels of labour market flexibility. Indeed India also saw a boost to its growth rates thanks to the liberalisation of product markets following 1991, but that generation of reforms has run out of steam.

Factors market reform- of labour, land and capital are urgently needed for growth now. UP is India’s most populous state but also amongst its poorest. Supplementing labour reform with easing of land acquisition will put UP on the fast track to industrialisation. That would not only enable Yogi Adityanath to do more for poverty eradication in his state than any previous CM, but also blaze a trail for the rest of India to follow.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

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The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

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We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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