Labour reforms for Atmanirbhar Bharat
- By Mansukh Mandaviya
The new labour codes establish a modern framework that demonstrates India's readiness to meet the demands of a dynamic and rapidly evolving global economy
For decades, India struggled with weak economic growth, entrenched corruption, and a chronic absence of commitment to job creation and workers’ welfare. Politically motivated gheraos and bandhs repeatedly disrupted industrial activity, stalling investments and eroding trust in the system. It is a shame that previous governments reduced labour welfare to mere slogans, failing to address the real issues faced by workers with seriousness.
It took a fundamental shift and national leadership to break this pattern. From the ramparts of the Red Fort, Prime Minister (PM) Narendra Modi invoked “Shramev Jayate” (labour alone triumphs), declaring that the dignity of labour must be at the centre of India’s development framework. This was not just a slogan, it marked the beginning of a transformational consciousness that placed workers at the heart of policymaking.
The need for reform was long overdue. Much of India’s labour law architecture traces back to the 1920s–1950s — statutes rooted in a rigid mindset. Meanwhile, the world of work has changed dramatically. The rise of gig and platform economies, digitalisation, flexible work structures, and new-age enterprises reshaped global labour systems. Yet India’s labour laws remained frozen in time, unable to support a modern workforce for a competitive economy. Through his panch pran (five resolves), PM Modi called for shedding our colonial mindset and embracing a future-ready approach. The outdated laws persisted not because they worked, but because previous governments lacked the political will, courage, and vision to reform them in line with emerging realities and national needs. Under PM Modi’s leadership, India’s global stature has risen to unprecedented heights. The world now acknowledges that India is no longer just participating — it is shaping the future, it is influencing it. But to truly serve this historic moment and convert potential into long-term prosperity, India must continue to build a clear labour framework built for the next century.
A comprehensive overhaul was therefore essential to achieve large-scale job creation, better living standards, and ensure universal social security for workers across sectors. The Modi government introduced four labour codes, marking historic reforms that will benefit India. The era of fragmented labour laws were consolidated into four major codes dealing with industrial relations, social security, wages, and occupational safety. These codes place the worker at the centre of a simple, transparent, and resilient system. They bring clarity and coherence into force. Together, they establish a contemporary framework that is conducive for job creation, enterprise growth and pro-growth reforms, ensuring that India is ready to meet the demands of a dynamic and rapidly evolving global economy.
Since the codes were passed by Parliament in 2019 and 2020, several states, Union Territories, workers’ associations, and industry bodies have welcomed the progressive intent. Recognising India’s grit, states across the country have amended their regulations in alignment with the codes. For instance, states that have allowed women to work at night with adequate safety measures saw a 13% rise in the total number of women employed.
Various stakeholders across sectors have recognised the need to move away from an outdated and complex system. In my interactions with workers and industry leaders, one message has emerged consistently — the new codes are focused on improving workplace welfare. This modern framework addresses outdated problems through modern solutions.
The reforms provide social security for India’s workforce. A universal social security net ensures assurance, stability, and dignity. The earlier system excluded a large section of India’s workforce, including gig workers and the self-employed. Today, the codes correct this historical exclusion. The codes acknowledge the voice of India’s workers, especially women who form the backbone of the nation’s workforce. Provisions for maternity support, single-window clearances, and reduced compliance margins will ease hiring and encourage local employment.
India’s progress in expanding social security, from 19% in 2015 to 64.3% in 2025, has earned global acclaim. The International Labour Organization has acknowledged India’s efforts, while the International Social Security Association has honoured India with its Award for Outstanding Achievement in Social Security. These international organisations have also hailed the new labour codes as modern, progressive, and forward-looking.
Much of the criticism about the codes arises not from an understanding of the reforms but from certain political interests resistant to change. Their motives behind creating unrest among workers stem from a misplaced sense of antagonism. India has moved past the influence of those who seek to derail reform with misinformation and fear. Workers have chosen progress, not stagnation.
The new codes represent a transformative shift in India’s march towards becoming an Atmanirbhar and Viksit Bharat. They protect the dignity of the workforce, encourage industrial growth, and create a model where workers’ rights and enterprise-friendly governance work together as one. This is modern Bharat. This is atmanirbhar bharat.
Shramev jayate!
