Labour market flexibility is one of the most closely debated public policy issues in India. This book provides a theoretical framework to understand the subject, and empirically examines to what extent India’s ‘jobless growth’ may be attributed to labour laws. There is a pervasive view that the country’s low manufacturing base and inability to generate jobs is primarily due to rigid labour laws. Therefore, job creation is sought to be boosted by reforming labour laws. However, the book argues that if labour laws are made flexible, then there are adverse consequences for workers: dismantled job security weakens workers’ bargaining power, incapacitates trade union movement, skews class distribution of output, dilutes workers’ rights, and renders them vulnerable. The book: identifies and critically examines the theory underlying the labour market flexibility (LMF) argument employs innovative empirical methods to test the LMF argument offers an overview of the organised labour market in India comprehensively discusses the proposed/instituted labour law reforms in the country contextualises the LMF argument in a macroeconomic setting discusses the political economy of labour law reforms in India. This book will interest scholars and researchers in economics, development studies, and public policy as well as economists, policymakers, and teachers of human resource management.

Presently, there is a constant intense debate on the requirement of reforms in labour law in India. We all are aware that the nature of labour laws today create rigidity in the Indian economy which impacts our growth. It is a fact that the Indian labour laws are numerous, complex and even ambiguous that which promote litigation rather than the resolution of problems related to industrial relations. Although the Government claims the amendments of the labour laws are made for the development of our nation, several trade unions have protested against these amendments saying that the amendments of labour and industrial laws were done without consulting them and these amendment favour the employers and not the labourers. This paper provides an examination of slow pace of labour reforms in India and consequences of digitizes in labour market, out-dated labour laws. The country has failed to reap demographic dividends as a consequence of policy paralysis so far as labour reforms are concerned. Irregular changes in labour laws have been unimpressive in attracting foreign investors or provide an impetus to domestic entrepreneurs interested in expanding manufacturing facilities. The paper presents the requirement for labour reforms in India and also discusses the initiatives taken by current government to make such reforms.

Seminar papers.

This book explores the effects of product market and labour market reforms on firms, labour institutions and labour rights in the economic and industrial relations system in India. India has over the years liberalized its economy through a broad range of reforms concerning the product market and complementing these it has also sought to reform the labour market and the industrial relations system. The book assesses the impact of these reforms on both the formal and informal labour markets in India, critically examines the labour processes and uncovers/describes precarious conditions of labour in various industries and occupations, and analyzes the dynamics involved in the making of industrial, employment and labour policies in contemporary India.