The past year and a half have seen an unexpected softening of India’s economic policy posture, an evolution marked not by headline-grabbing liberalisation, but by a series of decisions that collectively signal a shift toward greater pragmatism. The notification of the long-pending Labour Codes has naturally attracted the most attention, but the deeper story lies in how the government has recalibrated its political economy after entering its third term.

The Labour Codes themselves are a reminder of how difficult structural reform can be in a country where the interests of workers, employers and politicians rarely align. Their implementation, delayed for years, suggests renewed resolve to simplify the regulatory maze that has long governed employment. Yet, the move also reflects a changed environment: one in which the government seems more comfortable weighing political risk realistically, rather than avoiding it altogether. By pushing ahead........

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