THE 2047 LABOUR CODE

WHY THE NEXT PHASE OF LABOUR REFORMS SHOULD AIM TO MODERNISE WORKPLACE REGULATIONS AND FOSTER A MORE DYNAMIC LABOUR MARKET

- BY SURABHI

ON JULY 9, 2025, over 250 million workers participated in a countrywide strike helmed by major central trade unions to protest a number of issues, including labour-related policies. Workers, both formal and informal, from sectors ranging from agriculture, factories and mining to banks and railways, joined, indicating a discontent in the country's diverse and teeming labour force. Some of the issues included rising unemployment, underemployment, consolidation of Labour Codes, lack of labour protection, and shortage of fixed-term employment opportunities.

A DOUBLE-EDGED SWORD

It was not a one-off strike. Labour issues have proved to be a headache for successive governments with workers taking to the roads time and again.

On the other end of the spectrum, domestic and foreign investors have been seeking a review of India's cumbersome labour laws and copious compliances, some dating back to the pre-Independence era, as part of ease of doing business initiatives, all of which are necessary to attract capital which, in turn, can create jobs; seven to eight million workers join the country's workforce every year.