Related
- Economic Survey offers hope to 'aam aadmi' on inflation pains, subject to terms and conditions
- Economic Survey likely to project 6.3-6.8% GDP growth in FY26
- Economic Survey 2025 Highlights: Jobs, growth, fiscal deficit — how Indian economy performed and the way ahead
Labour reforms have created an enabling environment that balances ease of doing business with the protection of worker rights and foster a ‘virtuous cycle of job creation,’ supporting sustainable employment growth and economic inclusivity, the Economic Survey 2024-25 said.
Tabled in the Parliament on Friday, the Survey said by simplifying compliance, fostering labour flexibility, and promoting worker welfare, labour reforms have created an enabling environment that balances ease of doing business with the protection of worker rights.
Referring to the old labour laws, the Survey said Labour Laws intended to protect the rights of women workers have, more often than not, discouraged hiring by creating systemic barriers to their entry into the workforce.
“India’s new Labour Codes address this by enabling night shifts for women with safety measures, extending 26 weeks of maternity leave to gig and informal workers and mandating creche facilities in workplaces with 50 or more employees,” it said.
“The Codes ensure equal pay and prohibit gender discrimination in recruitment while allowing women to work in all sectors, including hazardous roles, with safeguards,” it said, adding these reforms will promote gender inclusivity, workplace safety, and social security for women.
According to the Survey, India has seen good growth in employment in recent years, as highlighted by labour market indicators that show strong signs of post-pandemic recovery and increased formalisation of the economy.
“This growth can be attributed to notable achievements in entrepreneurship, formalisation, skill development, and the transformation of the regulatory framework,” it added.
The Survey further said that deregulation, in general, whether or not related to labour, will boost employment because it helps lower the cost of doing business and allows for the resource to be used for expanding capacity through more labour and more and better equipment.
Budget with ET
Budget must find a fix for a crisis before it's too late
Is India about to add more 'castes' in one day?
Will Sitharaman give middle-class consumers some respite from price pain?
Referring to the old labour laws, the Survey said Labour Laws intended to protect the rights of women workers have, more often than not, discouraged hiring by creating systemic barriers to their entry into the workforce.
“India’s new Labour Codes address this by enabling night shifts for women with safety measures, extending 26 weeks of maternity leave to gig and informal workers and mandating creche facilities in workplaces with 50 or more employees,” it said.
“The Codes ensure equal pay and prohibit gender discrimination in recruitment while allowing women to work in all sectors, including hazardous roles, with safeguards,” it said, adding these reforms will promote gender inclusivity, workplace safety, and social security for women.
According to the Survey, India has seen good growth in employment in recent years, as highlighted by labour market indicators that show strong signs of post-pandemic recovery and increased formalisation of the economy.
“This growth can be attributed to notable achievements in entrepreneurship, formalisation, skill development, and the transformation of the regulatory framework,” it added.
The Survey further said that deregulation, in general, whether or not related to labour, will boost employment because it helps lower the cost of doing business and allows for the resource to be used for expanding capacity through more labour and more and better equipment.
