A 'virtuous cycle of job creation' via labour reforms

By simplifying compliance, fostering labour flexibility, and promoting worker welfare, labour reforms in the country have created an enabling environment that balances ease of doing business with the protection of workers' rights, according to the Economic Survey 2024-25.

- SHIVA RAJORA

Tabled in Parliament on Friday, the Survey mentioned that together, these measures foster a "virtuous cycle of job creation", supporting sustainable employment growth and economic inclusivity.

"Deregulation, in general, whether or not related to labour, will boost employment because it helps lower the cost of doing business and allows resources to be used for expanding capacity through more labour and better equipment," said the Survey.

The Survey presented a comparative study regarding the restrictions on overtime for factory workers in India and other countries. It noted that the current Factories Act, 1948, allows only 75 hours of overtime in a quarter, while countries like Germany (351 hours), the UK (364 hours), and Malaysia (312 hours) allow much higher overtime hours. Meanwhile, the US has no limit on overtime hours.