Abstract

The paper “Labour Market Reforms in India: An Economic Analysis” talks about the fact that India has an abundant working population, and it is the largest young workforce in the world. However, India has yet to lock in this advantage and use it for economic growth, it is a paradox of abundant labour supply and inadequate economic growth. The research explores the structure of the Indian Labour Force, the history and ties of Trade Unions with the laborers, and the new Labour Codes and their implications.  It also analyzes the growing gig economy, women’s participation in the workforce, and the serious need for skill development and mitigating the brain drain from the Indian Economy. It also does a minuscule comparison of  India’s growth in these reforms with other developing countries such as Brazil, South Africa, etc. 

The problems addressed here include outdated labour laws, some dating back to the 19th century, the ineffective influence and unity of trade unions, a lack of skilled workers, labour force informality, and limited social security measures for informal and growing gig workers and their safety. Furthermore, the paper also highlights wage inequality,  the minimum wage varying significantly across states, and gender disparity in the workforce, eliminating them is critical for India’s economic growth. 

This paper hints at a few solutions the most crucial being a proper and thorough implementation of the New Labour Codes, strengthening the social safety net, boosting employment for women, and supporting workers through various government programs like the National Career Service, Aatmanirbhar Bharat Rojgar Yojana, etc. Additionally, initiatives such as Skill India can be powerful in turning the workforce into a skilled one. The paper concludes by emphasizing a perfect balance between labour welfare and investment-led development to achieve the intended growth.

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