The labour code on industrial relations was finally brought before the Indian parliament on 29 November. The code forms part of a comprehensive labour reform pushed by Narendra Modi since he became prime minister in 2014. The stated objective of the code is clear: to improve the business environment by reducing the “burden” on companies when it comes to employment law. The code has been built using three existing laws: Trade Unions Act (1926), the Industrial Employment Act (1946), and the Industrial Disputes Act (1947).
In recent times India has constantly been on the rise up the World Bank’s ‘ease of doing business’ index. This year the country leaped 14 places to rank 63rd of the 190 countries in the index. The country is therefore hopeful of keeping up its progress and giving new impetus to its economy by, among other things, a large-scale labour reform that has been sought since 2014, when the Hindu nationalist party came to power.
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