Labour Reforms in India: Issues & Challenges

This paper provides a critique of slow pace of labour reforms in India and consequences of rigidities in labour market, archaic labour laws and glaring skill deficit. The country has failed to reap demographic dividends as a consequence of policy paralysis so far as labour reforms are concerned. Sporadic changes in labour laws have been ineffectual in attracting foreign investors or provide an impetus to domestic entrepreneurs interested in expanding manufacturing facilities. The paper presents an incisive account of emerging issues and challenges that pose roadblocks for labour reforms in India and imperatives for enhancing labour productivity and lowering labour cost without compromising international labour standards.