Private sector's support crucial for labour reforms

THE SURVEY CALLED ON THE PRIVATE SECTOR TO BOOST INVESTMENT AND EXPAND HIRING

- Zia Haq

The four labour codes, rolled out by the government last November, mark the first step towards transforming India’s labour market to spur job creation, but the transition will require “coordination and investment from the private sector”, the Budget-eve Economic Survey 2025-26, tabled on Thursday, said.

The codes, which bring sweeping reforms to employment regulations, “aim to strike a balance between flexibility and workers’ rights, focusing on ensuring industry competitiveness while promoting worker welfare”, the economic yearbook said. The codes, passed by Parliament during 2019-20, have replaced a welter of complex, British-era legislation, kicking off. set of reforms aimed at attracting investment and spurring job creation amid easier rules governing hiring and firing employees. They also rolled out a new social security framework.