Free up laws for longer work hours

The Economic Survey also calls for more women workers to be allowed in factories, and implementation of four key labour codes

- Devina Sengupta, Gireesh Chandra Prasad & Pratishtha Bagai

The Economic Survey 2024-25 says Indians must work longer, more women must be allowed to work in factories and, at the same time, states must swiftly implement labour codes that seek to uphold workers' rights.

On working hours, the survey says that working hour regulations are preventing manufacturers from meeting demand surges and participating in global markets. The survey points to Section 51 of the Factories Act (1948), which states, "No adult worker shall be required or allowed to work in a factory for more than forty-eight hours in any week."

The survey says that there are instances where labour regulations designed to protect workers' rights "perhaps inadvertently hinder the growth of firms, especially small and medium enterprises, by restricting their ability to expand operations when needed compared to global peers. In doing so, it dampens employment generation as well".

In recent months, leaders like Infosys founder N.R. Narayana Murthy and L&T chairman S.N. Subrahmanyan vouched for 70 hours and 90 hours of work per week, respectively.

The survey took a stance similar to the two leaders.

"India's working hour regulations prevent manufacturers from meeting demand surges and participating in global markets," it noted. The survey also noted that working hour restrictions meant to protect workers' health and prevent overwork may actually impact the earning potential of the employee.

However, not everyone agrees with the survey's observations. Nirmala Menon, the founder of Interweave Consulting that works on diversity and gender parity in India Inc, highlighted that extended work hours are not sustainable.