For over 70 years, India’s manufacturing aspirations have been shackled by an outdated, colonial-era labour framework that has actively discouraged formal hiring, penalised scaling, and rewarded inefficiency. While capital, technology, and entrepreneurship surged ahead, labour regulations stagnated—fragmented across 29 archaic laws that fostered inspector raj, litigation, and uncertainty. The impact is undeniable: suppressed investment, stunted job creation, and an overwhelming informal workforce.

Parliament approved the new law in 2020; now, after five years of political manoeuvring, it is set to be uniformly implemented nationwide. With the Centre’s notification of the four unified labour codes on November 21, India has decisively moved towards Viksit Bharat, where growth will be driven by productivity, formal employment, and enhanced global competitiveness—without compromising worker dignity. These four codes—Wages, Industrial Relations, Social Security, and Occupational Safety—constitute the most comprehensive labour reform since Independence. They do not merely maintain labour rights; they modernise governance to align with the demands of a 21st-century economy.

Industry Perspective: Prioritising Productivity and Global Competitiveness

The labour codes revolutionise enforcement philosophy. The new inspector-cum-facilitator system demands a shift from coercion to guidance. The introduction of digital inspections, third-party audits, and web-based compliance will drastically reduce corruption, harassment, and litigation, signalling a monumental transformation that goes far beyond superficial reforms.

The number of labour rules has plummeted from around 1,400 to roughly 350, significantly alleviating the regulatory burden on businesses. This transparency aligns perfectly with the expectations of global buyers, especially in exports........

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