IAS Preparation – Current Affairs: Labour Reforms

Labour is one of the main factors of productions and in most cases is the source of competitive advantage (especially for the service sector and the manufacturing industry).There is intense debate on labour market reforms in India today. It is argued that but for restrictive labour laws that create inflexibility in the labour market, the Indian economy would have experienced a higher growth of employment. On the other hand, this view is vehemently contested by trade unions and many other economists. However, attempts at reforming Indian labour market have been rather slow. Even the globalization and liberalization process that began in India in 1991 impacted labour market in a limited manner.

The Indian labour market is plagued by issues such as quality of employment, quantity of employment, poor enforcement of labour laws, archaic labour laws, militant and mafia unionism, politicization of unions etc. But can Make in India prosper with these issues at hand? Can we increase labour productivity with such impediments?

The government has come up with some Labour reforms – What is Deen Dayal Upadhyay Shramev Jayate Karyakram? What are the other new social security schemes? Is there any convergence of social security schemes with labour welfare? What is the way forward with respect to labour reforms in India? What questions can UPSC put up from this area?