Insights Weekly Essay Challenges 2016 – Week 18: Labour Reforms in India and its Role in Economic Development

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Insights Weekly Essay Challenges 2016 – Week 18


01 May  2016

Write an essay on the following topic in not more than 1000-1200 words:


“Labour Reforms in India and its Role in Economic Development “

  • minaxi

    Thanks You Sir… we were missing some new topics.. 🙂

    Wish you all happy writing Friends..

  • ATUL

    Good morning friends. ……

  • GK

    Good Morning Friends.:-)

  • Thanks, respected insights! ?
    A very good morning to all dear people! 🙂
    New month, some brand new plans and strategies! All the best everyone 🙂

    • pranay rajput

      Gud morng captain

    • Pankaj Nimbolkar

      ???My plan is to complete optional revision.??
      & to complete mains remained GS part.


    • vijay- the ray of hope

      Dear review mine I will also do the same

  • Mrinal Mukherjee

    Good Morning Guys !
    Just one small Suggestion for @insightsonindia : Like secure , can you please provide a couple of synopsis/bullet points that you expect to see in everybody’s essay ! We do not need something as extensive and exhaustive as synopsis, just the outline 🙂

    • +1

    • totally agreed…………it helps a lot of students on who depend on this site for their preparation……

    • Kautilya

      agreed with you Mrinal…gm.???

    • Dheeraj Kumar

      Read chapter 21 of IYB-2016, it covers all about labour reforms.

      • Mrinal Mukherjee

        Corroborating facts is a big task …You eased my work buddy and I acknowledge that 🙂

    • Aravind Varier

      Dear Mrinal ,

      You have asked InsightsOnIndia a wonderful suggestion which will surely help candidates improve their essay writing .

      I would request InsightsOnIndia to give a ROUGH WORK that a candidate should follow while writing an essay in about 5 to 6 points . I have personally made a Rough Work for Today’s essay topic which i am pasting it below for feedback . I am NOT sure whether , the format i am following is correct but , it would be amazing if InsightsOnIndia provide a Rough Work in a similar manner which will be helpful to the candidates 🙂

      “Labour Reforms in India and its Role in Economic Development “

      ROUGH WORK :

      1) Introduction : Historical perspective of Labour reforms in India ( since the beginning of the 19th century ) – [ 150 words ]

      2) Why was the Labour reforms felt necessary ( agrarian crisis , more manufacturing companies, exploitation of the British, communist movements across the world ) [ 200 words ]

      3) What were the positive aspects of Labour reforms in Economic Development ( how did it benefit the lives of the people and economy ) [ 200 words ]

      4) What were the negative consequences of Labour reforms in Economic Development ( militant labours , frequent close downs of industries , Hampering investment etc. ) [ 200 words ]

      5) FAIR JUDGEMENT by the candidate on the Future reforms on the Labour reforms by analyzing the positive aspect and the negative aspect . Then ,Discussing about the balance that have to be brought in the conclusion for the benefit of the Working class as well as the owners of the Industries for overall welfare of the country . [ 150 words ]


      Yours Obediently – ARAVIND 🙂

      • Harsh (Learning Unlimited!!!)

        Excellent points Aravind …. Very good . Plz write a full essay too

      • Anit ifs

        Thanks for the points. We can include points like role of productivity in the industrial revolutions and in nation building.

        Keep Writing!

      • Mrinal Mukherjee

        The outline I made was pretty much similar .

        –Pre Independence -History of the working conditions of labor in India –Indentured labors (can include child woman etc)
        –Post Independence – Need for labor reforms
        –How have the labor reforms impacted the labors –

        (a) Socially : Gender Discriminations , Abolition of bonded labor
        (b) Politically : Freedom to form labor unions to voice their concerns
        (c)Economically : Minimum Wages Act , Equal Pay for Equal Work

        –How have the labor reforms affected the economy (both positive and negative implications )
        –Shortcomings if any with the existing labor laws EG lack of implementation and awareness of the Minimum Wages and Equal Pay Act
        –What can be done to improve the labor laws

      • minaxi

        Hello Aravind..
        Nice frame.. And I think, You are writing labour reforms in historical perspective too. But, almost same framework can be applied for future purpose, by keeping present in center as reference.

        • vijay- the ray of hope

          Please minaxi review mine
          last time even my Internet also not working properly
          but today I will cooperate…..

      • NeoHinduism

        Historical perspective is good but it should be limited in 30-40 word in starting. The demand of essay is more in contemporary times. You have converted entire essay into a historical perspective. Instead focus on why need is felt in present times, what is problems in labour laws, what can be done and reform’s significance in industrial development and economicdevelopment.


        i think after your second point “why labour reforms necessary” the third point should be what are the reforms undertaken/proposed by government( related to industrial labour, child labour, plantation labour, domestic workers, bonded labour, agricultural labour) then talking about pros and cons of these reforms and then judgement.

      • TT

        Nice frame Aravind..its good that u have set word limit for each part..
        Further, u can start essay by quoting recent happenings in introduction part for relevance.
        It is exploitation ‘by the British’ not ‘of the british’…plz don’t mind:)

    • Sudanita Sanchez

      Labour Reforms in India and its Role in Economic Development
      The importance of any particular aspect of the economy can be gauged from the extent of the negative impact on the economy due to any problems encountered in it. Typically the economic growth consists of 3 main factor, CAPITAL ,TECHNOLOGY and LABOUR. Among these, THE FIRST TWO ARE THE NON-human components of any industry while the latter is concerned with the human resources. Each one of theses has its own importance and viability. But having said that, the human component is the one that becomes the most critical in terms of management.
      The factor of uncertainty associated with it makes it all the more important to manage properly to maximise efficiency in a particular economic activity.
      While capital and technology both are crucial, but under unchanged externalities, these tend to be much more stable than the labour component.
      At a given level of technological development, the capital input will always be more or less stable unless major economic changes take place. However, the same cannot be said about the human resources part. Labour has its own attached problems, and therefore needs to be imparted a more humanised perspective as distinct from a purely objective approach toward the other two components.

      Taking the example of information technology, that has catapulted the growth in the modern times, this comparison becomes even clearer. A bioinformatics specialist may not find many relevant changes in the technological sphere in the application part, neither would the capital financing be much volatile to the extent of disadvantage. However, the long cause of concern for such a specialist will be the terms and conditions of his or her service and whether the rewards for the hard work being put in are commensurate. This can be addressed in a different manner as follows.
      A person may be putting a given number of man hours and the company or the industry as a whole may be earning profits emanating from the intellectual acumen of that person to the tune of few dollars in a globalised scenario. However, the employee will be paid a particular amount. Thus, if the person feels that the returns on his or her effort are not satisfactory, he or she may consider moving to some other part of the world to off the same services. This will create a vacuum in the place of origin gradually, if all the workers started feeling so. Obviously there is lot of subjectivity involved, but a objective criteria must be evolved to efficient,y manage human resources in any industry for that matter.
      India, has witnessed large movements of educated and skilled labour force, due to less satisfaction with the employment opportunities at home, despite a well developed information technology industry REKNOWNED all over the world. In many other industries as well, even those requiring lesser skills or manual inputs, the trend has been quite similar. Thus, the issue of labour problem comes to the fore.

      The labour problem IN INDIA
      The issues are many and diverse ranging from quantity and Quality of employment
      to archaic labour laws dating back to decades and even before independence, Poor enforcement of labour laws, aggravated by militant and mafia unionism due to politicisation of unions.

      Thus, the need for labour reforms just cannot be over-emphasised . The following measures have been taken in the recent past to support other growth efforts like
      * The Payment of Bonus (Amendment) Act 2015:
      The eligibility for bonus payment has been increased from below R10,000 to R21,000.
      * National Career Services Portal: The Government is mandated to maintain a free employment service for its citizens. Therefore a digital portal that will provide a nationwide online platform for job seekers , will be provided..
      * Shram Suvidha Portal: further the unique Labour Identification Number has been provided for universal coverage.
      Further, the transparent labour inspection scheme; put in place, will ensure that exploitative measures will be avoided, and the whole process will be more accountable

      Labour reforms are much called for, and almost fundamental towards initiating any new growth efforts. The economic development is a much wider term as we all know it and it encompasses growth as well as other human development indicators of the population concerned. Therefore, labour becomes the key parameter to assess any such development. Reforms for getting rid of rigidities of the past and bettering implementation of the future, is crucial in this respect.

      Please review

      • vijay- the ray of hope

        Please review mine

      • gomuki

        While writing essay first we need to bring out the context of the question. So you can start with how due to rigid labour laws many companies are shifting their bases( because vietnam, philiphines are giving tough competetion with easy polices). So to succeed in Make in India we need to attract international investors for that what kind of labour reforms are required… from industries perspective —–Industrial disputes act( removal of employee only after state permission),,, contract labour act( employer cant change designation of employee) and factories act ( no flexible working hours ) and from labours perspective…..what all are needed.

        you could quote rajastan model and women labour perspective and due to rigid labour laws industries are not interested in hiring regular workers, so informal sector is growing. Trade unions lobby and their linkage with political parties ( for eg: BMS dint protest against bjp reforms as it was affiliated…….

        China labour cost is growing how we can use it to our economic development through labour reforms

        in solutions we can follow german model where labour are part of decision making, policy designing of industries which is also mentioned in dpsp … which is a balanced model.

      • gomuki

        why labour reforms not took place: In India caste and religion dominated the class . In western societies political parties formed based on class like labour party in U.K, In India only few not so important parties formed based on class, we can see chief ministers formed based on caste but not on class based, even festivals also caste or religion based ,, how many people bother about May 1 , not even labours.( additional info.)

      • NovaStar

        Your introductory part is awesome. And full marks to you for that but you didn’t cover the labour reforms holistically. while connection with Indian economy is missing. Example such as of Rajasthan’s progressive movement to weed out archaic laws can be included.

    • gomuki

      How to write Essay:

      (This format I have copied from two toppers of Upsc-2006, 2013. I neither claim any originality nor take credit)

      After reading many essays in the Insights I would like to present my views on “How to write Essay”. Before going to that , what qualities are required to become a civil servant? In my opinion required qualities are- Understanding the problem, always ready to update , maturity, able to see the issue from multiple dimensions, not only pointing the problem but also should know the solution and futuristic oriented. While writing essay(for that matter any answer) how can we tell the examiner that we possess all these qualities.

      I would like to explain how to write essay/any answer by taking a previous year essay: Tourism next big for India(2014).

      First part is Introduction: While writing introduction, ask your self a question, as there are many topics why he asked this question, it means this topic has current relevance, start your introduction by quoting the relevance of the topic. For eg: tourism question, relevance—people talk about demographic dividend but there is no employment, current account deficit, people talk Mgnrega is of no use, rural to urban migration and regional inequality, and through service sector(software) jobless growth, Govt announce swatch Bharat( How we can converge tourism with swatch Bharat). These are the issuses and we can write how tourism resolves all these issues. If we write like this, we will show two qualities, we understand the problem and by quoting contemporary examples we are updating ourselves continuously.

      Next—-Body part …write different dimensions—-historical, political, economic, social, and so on here .try to explore different dimensions of tourism—medical, art, business, local tourism, piligrimage and many other dimensions—It means we see the issue from multiple directions.

      Third thing…….If everything is perfect they will not ask this question.. it means there is something wrong… so highlight the loopholes ( If asked specifically explore more dimensions, if not try to write core points)……no cleanliness, luxury tax, no safety( can quote current examples like rape in goa or attack on Russian woman) , no infrastructure, no logistics, hypocrisy of Indians, no awareness of tourist sites in India and so on………

      Fourth thing is, we should tell the examiner that we are solution oriented… it means if the question asks specifically to write solutions ,,,write many points ,,,if it is not asked then write core points(at least 2 ) while mentioning govt. steps………Here Although govt has taken steps to boost the tourism- visa on arrival, e-visa- but there are some other urgent measures should be taken to boost tourism- no differential charges for tourists, try to include more places in Unesco heritage list, ICCR should conduct more awareness fares in abroad and so on………

      Last thing is conclusion……Through conclusion we need to tell the examiner that we know what happens if present issue is not solved….so try to present what happens in future if issue is not resolved….for this topic… India’s population is growing, and more number will join workforce , if the potential of tourism which provides huge employment with low investment that to for semi-skilled and unskilled(women, sc/st)people not utilized , India would not able to enjoy the demographic dividend rather it will become demographic burden. Govt also realized the potential of tourism, has taken some good steps in this regard, if other measures also followed India would not need to go IMF if we have current account deficit, which happened in 1991.

      How can we prove examiner we are matured that is my maintaining proper flow, Please give more importance to flow of your answer, we can compromise some points at the cost of flow. With this we have covered all the qualities. This is not only applicable to essay but also for your answer writing in GS .

      May be I am wrong , you can ignore if you think so.

      • BRK

        Yo spot on! Please review my essay. I’ve taken a different approach and would be very much obliged for your review.

      • TT


    It’s a scorching hot new month !!!
    All the best!!

  • Dheeraj Kumar

    Please notify DD basu chapters….

    • Akanksha

      chapter 1.2,3, 11.2; 13.3; 26; 30

  • Kautilya

    Thank you sir…have gr8 Sunday….Good Morning to all INSIGHTians…???

  • Anit ifs

    The early man and his tribe of 5-10 people needed 80km square of area to survive. That was the minimum resource that their labour productivity allowed them to live off. The first economic revolution was therefore when the neolithic men and women started using finely shaped stone tools to allow them better returns off their efforts. No longer did they need to wrestle big game down, they could now easily kill it with their spears and arrows.

    The agricultural revolution was a new step. Now all that a man and his family needed to survive was a field about a hectare in size and some crops that could be stored in winters. Again, it was a jump in productivity that did the trick. In similar vein, we can see the industrial revolution, the second industrial revolution through electricity, the third internet driven one and the coming fourth one driven by ai and networked devices . Each of these successive revolutions were marked by significant improvements in productivity of labour.

    Ever since man began could produce more than he needed for his own survival, the basis of society was laid. The men who no longer needed to work on farm were able to join various professions. The blacksmith was able to give the farmer a plough, the king was able to effectively distribute the resources. The society as a result grew and trade arose. The sulprus allows technological innovation, knowledge, religion and a host of other activities. Commerce led to industry and that to the modern state. The basis of all of this growth was always the labour productivity, either in farms or in other industries.

    India therefore represents a sort of aberration. Although our society has been able to make the quantum jump to the final stages of information revolution, we are at our fundamentals, not a very productive society. More than 60% of our population is directly involved in a minimally remunerative activity, agriculture. There too, with the old techniques, implements and over supply of labour, much of our human potential is wasted. Therefore, how can we expect to have economic growth?

    Indian labour was one of the most productive in middle ages, when Europe was still in darkness. Then our labour was able to produce fine muslin, lost wax bronze statues and intricate paintings. But as the role of machinery grew, we lagged behind and a massive number of artisans found themselves jobless under the British, bringing our economy back to start of Mauryan society. We were totally dependent on imports, our technology was hopelessly outdated and there was no indigenous trade to speak of.

    Independence brought colours of socialism, industrial growth and host of positive spirits. However, we were so adamant in progressing, that we forgot the most important means to do so. In 1962, when we discovered that we didn’t have enough grains to feed our countrymen, we realised the importance of labour productivity. The earlier reforms to improve it ie. the land ceiling acts and zamindari abolition drive were so hopelessly corrupted, that our system was forever tainted with inefficiencies. It was only because of the green revolution that our country was able to move forward.

    Agriculture still lacks efficiency in marketing, storage, irrigation, production, post production which is basically all of its stages. The government had started massive public sector undertakings to give drive to our economy and give employment to the people. However, we did not realise that in absence of a qualitative reform in the labour sector, we would be building on moving sands. That is what has happened, for our industries were not able to compete with the global standards in spite of the protectionism given to them and all of this culminated into the crisis of 1991.

    It is not entirely true that government did not care for it’s labourers. In fact, the factory act 1948, laws regulating the conditions of work, hours of work, overtime etc. are some of the most protective in the world. Trade unions act has allowed labourers to form unions to collectively demand their rights and the Employee provident fund gives a security net by the government. The problem has always been that the productivity of the Indian worker has lagged far behind their global compatriots, thereby jeopardising the entire economic edifice by rendering the industries uncompetitive agasint the globe.

    This also means that when there are no profits, there cannot be industries and thus labourers. Which is also why, India has a massive unorganised sector. The large number of clumsy laws, the inefficiencies in the system, vested interests and ultimately poor incentives for improving them by the government has rendered our economy hollow at the base, which is why we experience jobless growth despite the spectacular performance of our Service Industry ( one industry which has a productive workforce, even in comparison to the global one).

    TO understand why labour productivity is so important, lets go back to Mr. Ford’s model T. This was the first car produced on a mass scale on the factory line.. What it did was not only to make an affordable car, but also to make the car affordable for many. How did he do it? By increasing the productivity of his owkrers, he was able to make the car far cheaper than his competitors and by paying the workers well, he was able to generate consumers for his product. Labour reforms should ideally tackle both the sides of the issue and thereby insuring growth for all.

    Labour reforms in India are not only necessary to increase growth, but they are a fundamental requirement to take our economy from a post colonial raw material provider to the world class economic power that we hope to be. The modern methods of production are not merely to enhance profit, but to start a virtuous cycle of growth where lower amounts of resources are used to churn out more economical value and innovation, thereby taking the economy on a different growth graph.

    Our so called demographic potential can be turned into a demographic disaster if the situation doesn’t improve. What are the major impediments?
    – The trade unions are ossified and seek only the gain of their limited members, holding up industrial growth and welfare of the unorganised labour
    – Untrained, uneducated workers, who can’t find jobs in increasingly knowledge oriented economy
    – Absence of social safety net, health and education for the workers to be able to upgrade their skills
    – Lakc of entrepreneurial spirit because of lack of funds and also because of excessive red tape

    The labour of our country si hopelessly under used. Lack of modern machines means that human muscle still drives the wheels of Indian industry, just like it did thousands of years ago. The innovative growth cannot come unless there is a fundamental reform. But what are these reforms?

    The reforms required are in nature of flexibility of hiring, uniform social safety net given by government, collaboration with private sector to give training to the workers, use of modern machinery and knowledge processes to upgrade to a more efficient production, better use of female workforce, greater managerial innovation to adapt to Indian conditions and much more.
    Rajasthan has initiated these reforms by increasing the flexibility of workers and decreasing compliance cost to Industries vis a vis the government.

    The current picture appears grim, especially in the north to east belt where majority of the population resides.Not all is lost however. The government has launched schemes like Start up India, Made in India, digital India which would not only increase the level of production in country, but also would improve the quality of human resource. The apprenticeship programme is likely to churn out millions of well trained workers and schemes like Atal Pension Yojana would enhance the security blanket.

    Nation building was made possible by the labour reforms, when slaves were banned and machines allowed people to produce far more than they ever could by using outdated methods of production. This not only brought widespread equity, but also widespread well being of the people. India suffers from many social evils, we cannot expect these to go away unless we empower our people economically.

    Many internal disturbances, like the one that occurred in Punjab and the one going on in north east can be attributed to lack of economic growth in these areas. The frustrated youth had to take up arms. This means that the labour reform is not only essential for economy, but also for keeping our nation together.

    Going into the future, we must realise that the changing dynamics of production are fundamentaly altering the requirements of labour. Robots, networked machines etc. would require that our coming generation is knowledge proficient. Physical labour would decline and we need to get ready for it by initiating education reforms, introduction of vocational courses, emphasising on practical education etc.

    India is standing at a critical juncture, where the steps taken in the next few years would disproportionately determine our future. This si the time that we wake up and take the reins of our destiny in our own hands, after all we have a tryst with it to be fulfilled.

    • Vijay Ratnam

      good but getting bored

      • Anit ifs

        any good suggestions as to how to make it interesting?

  • Sumit

    1. (May 01, 2016) – Labor Reforms in India and its Role in Economic Development

    Sunita, a curious student of her society who is known among all the community members as an outstanding student. Besides her performance in schools exams and exemplary participation in extra-curricular activities, she takes an active part in community meeting s and gatherings. Belonging to an unorganized sector characterized with low socio-economic status and poor level of Human development indicators like nutrition, health etc. which she and her neighborhood people often complain of such persistent issues. She thinks that these out-of pocket expenditures have thwarted her job potential status, simultaneously have shifted them to the major burden sharing category of vagaries of climate change and non-functional legislative reforms. She decided to pursue this issue for her summer vacation report.

    But what is real cause of such dismal situation of Sunita and her community?? Is it really the lop-sided nature of legislations? Or historical deprivations and inequality trap they have been subjected to from time immemorial under the banner of development?? One such sure cause can be attributed to slow progress in labor reforms.

    Sunita asked her teacher about Labor reforms and its significance to get a holistic picture of its consequences on her current situation. Her teacher exclaimed that reforms in labor sector has colonial roots, which were created at first place to control the Indian masses for their own selfish motives like plundering of India’s natural wealth and resources, colonial expansion via development of railways, de-industrialization of India’s cotton, jute factories, making India dependent on British export thereby resulting in Brain Drain and economic degradation. But to achieve such aims they made legislations with strict regulations regarding labor.”

    Sunita was curious about knowing the origin of Labor laws to which her teacher pursued the original discourse by saying that ”they were mostly centered around labor’s working conditions, labor working hours ,their wage payments, type of work. Extreme severity on above factors made Indian labor force subservient due to lack of knowledge in Industrial processes and low indigenous innovation capabilities reduced India’s Natural resources i.e. demographics at British will.

    Post-Independence brought with itself a new paradigm with Indian Polity’s inclination towards socialism and citizens demanding for their right ensuring justice, liberty, equality, fraternity. This was to be achieved with relaxation in labor laws and giving them right based orientation where labor is seen as a means for economic development rather than an end in itself which involves workforce exploitation.

    Several legislations have been amended like extension women night working hours, increased maternity benefits to pregnant women, entry and exit norms of labor and sick industries, unorganized identification number, making employer responsible for timely wages and pension, Industrial disputes act for formation of dispute redressed mechanism.

    Recent economic shift towards modernization in form of demographics skilling, Make In India, Digital India reforms like emphasis on skill development of labor workforce under Apprenticeship Protashan Yojana ,economic security provision with recent Minimum Wages Act amendment, increased focus on social and physical infrastructure creation as per labor ratio are noteworthy.”

    Sunita was overwhelmed on getting acquainted with India’s progress with regard to labor reforms. But, deep inside her thoughts she was thinking critically about how come such reforms haven’t yet alleviated the masses employed in unorganized sector from past poverty trap?? To this her teacher explained in detail that” poverty is a mindset and not a condition. It can be overcome provided holistic approaches with concrete reforms are taken on a timely manner.” With this she went on”India’s Economic development is hinged upon 3D’s i.e. demographic, demand and development whereby deregulation of power at lower level of federal; structure, devolution of funds to local authorities are the need of the hour. India’s low skilled workforce, regional disparities among states, limited technological infrastructure have limited India’s capitalization potential on 3D’s. Unorganized sector majorly comprised of masses from lower and backward sections of society complemented with rampant urban migration trends due to push factors, have made labor reforms a necessary condition for inclusive growth achievement.

    In current scenario, where India’s modernization drive characterized with urbanization, industrialization and optimal natural resources usage have become salient, employment opportunities in unorganized sector is bound to rise, which may have a –ve effect on state’s economy since population explosion is not occurring in consonance with skill creation and local manufacturing capabilities development. Complemented with excessive red tapism, slow governance implementation, land acquisition and environmental audit have retarded India’s growth prospects.” Sunita frowned on getting insight into labor reforms association with economic development issues.

    Getting a complete picture on labor reform issues she got more determined to become a change agent to for mainstreaming current employed labor in unorganized sector with nation’s aspirations of “Saabka Saath,Saabka Vikas”.

    With interaction with community members, teachers, using ICT mode for exploration and peer-group support she prepared a list of essential reforms like “ identification of state’s inherent advantages like tourism, manufacturing of steel, cosmetics, handloom sector, educational hub, pilgrimage centers and using these as the focal point for labor force current social-economic upliftment. Leveraging export potential in coastal cities, streamlining of Geographical indicators in organized sector, development of Green mfg. hub, connectivity and port modernization. Simultaneously, availability of basic services like food, Housing, Power, Water, entitlement based work should be made available with increased affordability and accessibility.

    Sunita also suggested inclusion of Multi-stakeholderims approach involving CSR funding, Area based NGO’s for human rights, institutional interventions similar to Pradahn mantra kanjhi kalyan kshetra yojana for social and physical infrastructure should be replicated across all sectors thus making India making a India a beacon of hope and stability in global as well as domestic sphere of sustainable and inclusive development.

    • Saint Shambhujs

      Framing a Story for writing an essay is good Idea and you did the job beautifuly. The story of Sunita a talented and thoughtful school girl is well able to keep the reader attached to the topic.

      But the essay is largely leaning towards the Labour Reforms only and did not throw sufficient light on its nexus with economic development in India.

      “Poverty is a mindset not a condition ” Sunita digested it lightly but I am finding it heavy ?.

      Over all great job. ?.

    • Deepak kumar

      NICE. plz review mine if time permits . Its my 1st essay.

  • Sudanita Sanchez

    Labour Reforms in India and its Role in Economic Development
    The importance of any particular aspect of the economy can be gauged from the extent of the negative impact on the economy due to any problems encountered in it. Typically the economic growth consists of 3 main factor, CAPITAL ,TECHNOLOGY and LABOUR. Among these, THE FIRST TWO ARE THE NON-human components of any industry while the latter is concerned with the human resources. Each one of theses has its own importance and viability. But having said that, the human component is the one that becomes the most critical in terms of management.
    The factor of uncertainty associated with it makes it all the more important to manage properly to maximise efficiency in a particular economic activity.
    While capital and technology both are crucial, but under unchanged externalities, these tend to be much more stable than the labour component.
    At a given level of technological development, the capital input will always be more or less stable unless major economic changes take place. However, the same cannot be said about the human resources part. Labour has its own attached problems, and therefore needs to be imparted a more humanised perspective as distinct from a purely objective approach toward the other two components.

    Taking the example of information technology, that has catapulted the growth in the modern times, this comparison becomes even clearer. A bioinformatics specialist may not find many relevant changes in the technological sphere in the application part, neither would the capital financing be much volatile to the extent of disadvantage. However, the long cause of concern for such a specialist will be the terms and conditions of his or her service and whether the rewards for the hard work being put in are commensurate. This can be addressed in a different manner as follows.
    A person may be putting a given number of man hours and the company or the industry as a whole may be earning profits emanating from the intellectual acumen of that person to the tune of few dollars in a globalised scenario. However, the employee will be paid a particular amount. Thus, if the person feels that the returns on his or her effort are not satisfactory, he or she may consider moving to some other part of the world to off the same services. This will create a vacuum in the place of origin gradually, if all the workers started feeling so. Obviously there is lot of subjectivity involved, but a objective criteria must be evolved to efficient,y manage human resources in any industry for that matter.
    India, has witnessed large movements of educated and skilled labour force, due to less satisfaction with the employment opportunities at home, despite a well developed information technology industry REKNOWNED all over the world. In many other industries as well, even those requiring lesser skills or manual inputs, the trend has been quite similar. Thus, the issue of labour problem comes to the fore.

    The labour problem IN INDIA
    The issues are many and diverse ranging from quantity and Quality of employment
    to archaic labour laws dating back to decades and even before independence, Poor enforcement of labour laws, aggravated by militant and mafia unionism due to politicisation of unions.

    Thus, the need for labour reforms just cannot be over-emphasised . The following measures have been taken in the recent past to support other growth efforts like
    * The Payment of Bonus (Amendment) Act 2015:
    The eligibility for bonus payment has been increased from below R10,000 to R21,000.
    * National Career Services Portal: The Government is mandated to maintain a free employment service for its citizens. Therefore a digital portal that will provide a nationwide online platform for job seekers , will be provided..
    * Shram Suvidha Portal: further the unique Labour Identification Number has been provided for universal coverage.
    Further, the transparent labour inspection scheme; put in place, will ensure that exploitative measures will be avoided, and the whole process will be more accountable

    Labour reforms are much called for, and almost fundamental towards initiating any new growth efforts. The economic development is a much wider term as we all know it and it encompasses growth as well as other human development indicators of the population concerned. Therefore, labour becomes the key parameter to assess any such development. Reforms for getting rid of rigidities of the past and bettering implementation of the future, is crucial in this respect.

    • Saint Shambhujs

      The introduction should work as an appetizer to read the entire essay, you managed it very well.So the Intro is EXCELLENT.

      But as the essay progressed the subsequent paras seemed as a comparison of labour with capital and technology, I think you Unnecessarily spend two paras for the comparison.

      Then in the the second half you were in haste to wind up and touched although very significant topics but flow was disturbed and addressed in a casual manner. Bombarded the most important facts but in lose format.

      And finally a satisfactory and ordinary closure.
      Over all a good effort. ?..

    • Deepak kumar

      Good one please review mine.

  • Shrunga Chandrashekar

    Land reforms in India and its role in economic development

    Agriculture is the main occupation in India with more than 50% employed in that sector. But the landholding in the agriculture has been low all time more than 10% are landless and work as laborers, average landholding has reduced to 0.3 hectare, Marginal and small land owners constitute 85%. All these facts are evidence for the need of land reforms in India.

    What are the causes for landlessness or decreasing landholding? Varna system followed in our society were lower caste people cannot hold land has contributed to the problem of landlessness. Along with this zamindari, Mahalwari system followed by the British where the land ownership was concentrated in hands of single person. The hereditary distribution of land among the family members has been the reason behind reduced landholding.

    How this issue is affecting agriculture? As the landholding reduces, productivity reduces and farm income of the rural households will decline. The reduced income of the rural households will make them vulnerable to the natural calamities like draught as they cannot sustain without income from farming for a season due to no savings in hand. Landless laborers will not have collateral thus will lack access to formal financial help and are prone to be trapped by interest rates of private money lender. With the reduced farm income people often tend towards other employment thus increasing migration.

    Land Reforms can be solution to this problem. Governments have worked on land reform from the early days of independence with the objective of removing intermediaries, distributive justice, improving farm productivity. The legislatures from the state governments fixing the ceiling on land holding, giving ownership to the cultivator, abolition of zamindari system were enacted. These land reforms were not implemented properly, land owners were reluctant from giving the land ownership, benami land owners were created by the large land owners to retain land.

    Five year plans also outlined the objectives and steps that can be taken to carry out the land reform. But due to lack of political will and societal co-ordination land reforms became an unfinished agenda of the democratic India

    Bringing about the land reform was not only an attempt by government but the social reformers like vinoba bave also tried to bring about the reform through Boodhan and Gramdhan. Vinoba bave went round the country collecting the land donation from the large owners, zamindars and distributing those among the poor farmers.

    How the Land reforms will help in improving the agriculture and economy of the country? With the reducing land holding the productivity of the agriculture is going down which is resulting in the reduced rural household income. Land reform like collective farming, tenancy etc. can help in improving the productivity by efficient use of total factor productivity. The land ownership will help the farmers in getting the institutional financial help thus helping the framer, reducing the burden of the high interest rates, reduces the suicide rates among the farmers.

    At present the agriculture is growing at -3% which is due to droughts for 2 continuous years. Land reforms can help in bring the agriculture growth rate above 2%. With the improved rural household income government can divert the social sector spending on infrastructure thus creating capital assets, improving the development of the manufacturing. With the rural empowerment, improved purchasing capacity of the rural household increases thus strengthening the domestic market and creates demand for increasing production which will help India to be industrialized country. With the improved agriculture production and manufacturing India gains negotiating power in the international forums thus will be able to safeguard its national interests and end the discriminatory terms.

    With the economic and social development Land reforms become high priority need for the country. But how to carry forward this land reforms is a challenge due to its past failure record. States should legalize tenancy by fixing the rent, securing the ownership of land owner, securing the tenure for the tenant. Government should phase out interest subvention scheme which is been used by the rich land owners who are turning to be moneylenders and provide loan to tenant based on the tenancy agreement. Niti Aayog working on the land reforms has formulated the model Act for land lease, which should be implemented by the states with the suitable changes that suits their society.

    With more than 50% employed in agriculture, it is important sector for the economic growth. As the rural income improves their purchasing capacity improves and thus the entire economy of the country. Land reforms can be of the contributor for the rural empowerment which should be complimented with strengthened irrigation, procurement process, and crop diversification. Land reforms require both political will and administrative capability to make it successful and bring in changes.

    • Saint Shambhujs

      LAND REFORM or Labour Reform?

      • Sudanita Sanchez

        Sharp EYES!!

        • Saint Shambhujs


        • Shrunga Chandrashekar

          High time to take a eye checkup 😛

      • Shrunga Chandrashekar

        Misread the topic, a biggest mistake that could happen. Thank you for pointing out at my mistake. Ill take care about this in future writeups and exam too.

  • Eco-friendly

    “Labour Reforms in India and its Role in Economic Development “

    India is second most populated country in the world and with an average age of 29, India is in the middle of a demographic boom. It is important that with the changing time and world scenario where many nations are becoming old (eg- Japan), we leverage our demographic dividend and use its potential to the fullest. With agriculture becoming overburdened with manpower providing disguise employment, India must try to generate more employment in manufacturing sector which is over the years has been ignored.

    For this target to achieve factors of production like- land, labor, capital, electricity, etc. should be boosted. Labor market reforms is one of the most demanded reform from investor’s side. But there are that are concerns plaguing labor market. Article 246 (with 7th schedule) of the Indian constitution puts the issues related to labor and labor welfare under the concurrent list because of which today we have around 47 central labor laws and 200 state labor laws. These laws hinder investors to come to India, increase trade unionism and give rise to inspector raj.

    Economic survey duly notes that contractual labor is on the rise in states having rigid labor laws. Various political parties are also reluctant to reform labor laws as labor today constitutes huge vote share in times of election. This results is low contribution of manufacturing sector in employment, poverty and improper utilization of man-power.

    Problems of child labor, socio-economic condition of poor, socialist approach of government, pressure from civil society and unions and greedy approach of capitalists also hinders government morally to ease labor laws.

    But as population increases, demand for employment, investment, finished goods, standard of living, etc. goes up. This demand put pressure on government to bring in labor reforms and ease doing business. Today India has become the fastest growing major economy in the world and with services and manufacturing contributing major portion of India’s GDP it is necessary that our labor laws and easy entry exit laws become more and more competitive and investor friendly.

    For this government has introduced various bills like Factories bill, Labour Code on Industrial Relations Bill, 2015, Labor Code on Wages Bill, Child Labour (Protection and Regulation) Amendment Bill, and Payment of Bonus (Amendment) Bill were introduced in the parliament. Start-up India campaign, Shram Suvidha portal has been formally launched recently. Labor ministry has talked of making National Social Security Authority and smart cards for unorganized sector.

    All these Labor reforms if implemented successfully can improve the socio-economic condition of people of India. Through better labor laws and liberal policy there is a growth in investment. With some of the recent initiatives by government in ease of doing business (increase FDI limit in various sectors), FDI has reached highest in 2015. And as the investment (domestic and foreign) increases, employment generation also goes up. Also with Start-up India, government has eased many compliance laws so as to bring in more investment and innovation.

    Labor law reform will also give boost to India’s flagship program “make in India” which invites foreign companies to set up their business in India. These companies come with novel technology and investment, boost trade opportunities and provide employment. Along with these companies an opportunity of growth in core sector which provides raw material to these companies also gets boosted. In the periphery of these companies many nearby areas also gets opportunity to set-up small businesses like tea stalls, small grocery shops etc. which boosts overall economic environment of the area.

    In India 93% of work force is working in informal sector (unorganised). Main reason for this condition are archaic labor laws which hinders employers to give permanent/formal job to labor. Most of the employers try to go for contractual labor instead of regular one even when cost of contracting is higher. Factories Bill introduced by government and an executive order of setting minimum wage will help workers and factory owners in complying with new laws. Formal employment will increase wages of employee and improve its socio-economic condition.

    Factories bill introduced by the government will help entrepreneurs and keep inspector raj away. This bill if becomes a law can give boost to MSME sector which presently contributes to 40% of exports and provides 60 million jobs. With entrepreneurship comes new technology which will help in decreasing the cost of production and hence making our exports competitive in the global market.

    Increased employment, cheaper production, and formalization of jobs will contribute to more disposable income in the hands of the poor. In gloomy global demand, India through its labor laws, and progressive policies can boost domestic demand. More profit from business will bring in increased revenue for the government which increases government spending on infrastructure building and other social activities.

    Better labor laws also provide for equal opportunities for second gender in the formal sector. According to Christine Lagarde IMF chief gender parity in labor sector can increase India’s GDP by 27%. It will promote women empowerment and bring in untapped work force and talent.

    As the above benefits show that reforms in labor laws are not only needed to bring growth and profit to capitalist but also to benefit the poor, make agriculture profitable and viable. Increasing employment with least inflation is what every government requires. For this to happen production must match the growing demand. For more production government should ensure that laws must not be a worry for businessman.

    Much has been done by the government to bring in labor reforms still a lot needs to be done. Skill in one area where proper implementation of government policies like skill India, Nai manzil, Ustaad, etc is needed. Unification and harmonization of the labour laws should be done.It is only through labor reforms that India can achieve its desired target of manufacturing sector contribution of 25% in GDP by 2022, 40 million jobs by 2020 and rank under 50 in ease of doing business.

    • Harsh (Learning Unlimited!!!)

      Well written …

    • Shaktimaan

      helo ecoo!!
      excellent >> because of ur coverage sab kuch likh liya >> toh interesting bna diya apne eassy ko:)
      ek para me bs naam diye h act k>> better ki one line me unki significance explain b karte
      concl canbe better:)
      if tym permits plaz hv a look at mine also:)

      • Eco-friendly

        coverage me kuch choota bhi h…..which i find in yours….

        haan yaar I should write their significance and what changes they bring about.
        Actually aaj ka topic thoda tuff lga because I feel I do not have much idea about labor reforms
        Really thankful to insights essay ki wajah se kuch gyan he badha……

    • vijay- the ray of hope

      Review mine dear

    • gomuki

      100 million jobs in the last para…..

    • missionmode

      Hi! Overall this essay covers almost all aspects of the problem (i personally missed out on the schemes). Somethings else that you could have added were the historical development of India labor class and its impact our economic development. Further, i find that you have mentioned a lot of problems and then proposed upcoming legislation/policies to allow for better future. You could try and cover the problems with labor reform policies of India so far.
      Please do review mine!

      • Eco-friendly

        Hey missionmode thanks for reviewing. Yes I missed upon historical part. Can you please explain your last line “problems with labor reform policies of India so far”. Please give 1-2 point so that I can get exactly what you want to say.
        Will surely review yours

        • missionmode

          What i meant was you could detail the criticisms of our labor laws so far more elaborately. I could see you have mentioned many recent initiatives and bills and how they will help our economy but the performance of past laws was missing. You could add that.

    • MJ

      Hey Eco-friendly …..U have written comprehensive essay. Here , I would like to mention some additional points –1. Ratifications of ILO conventions and its impact on India. 2. India at bottom of Ease of doing business….reform needed. 3. Informal sector workforce outside social security net.
      Review mine also…. !!!


      hey eco friendly, your essay extensively focussed upon industrial labour and child labour but you missed upon other dimensions like: bonded labour, domestic workers, agricultural labour, plantation labour(recent strike in kerala and assam tea plantations). also you didn’t talked about cons of reforms introduced/proposed. try incorporating them as your essay will seems exhaustive then with no other stone to turn.

    • Ghost

      I think the flow is missing. It should unfold as a story uncovering layer after layer. Your content is great but I find it as accumulation of facts without direction. Sorry if the comment is too harsh. I myself is no expert. 🙂

  • p310

    Labour Reforms in India and its Role in Economic Development

    In recent time there has been a considerable increase in the
    fractions of our society but despite that the two key classes remains
    the same, that is , the bourgeois and proletariat. Growing role of
    capital and technology has pushed the interest of labours further aside.
    Our constitutional directives prescribed under Article.39,42, 43 to
    ensure overall welfare of labourers are still far from being achieved.
    Post LPG(Liberalization, Privatization, Globalization) era in India,
    condition of labour force has only worsened. Our country has a labour
    force of 40 crores which is among the highest in the world and with
    rapid rate of addition of workers each month this number is bound to
    increase. Presently, our economy is at an interesting junction. We are
    currently growing with a GDP of around 7% but our job growth rate is not
    even 1%. One of the major reason for it is failure to smoothen the
    labour laws. With more than 150 labour laws including centre and
    states, this has been one of the most heavily regulated area. Need of
    the hour is labour reforms so that we can achieve our social and
    economic imperatives.

    Why labour reform is necessary?

    Post LPG era, India saw rapid change in economic status. Our GDP increased,
    forex improved, trade saw a jump but our job creating abilities has
    still not improved significantly. Credit for it largely goes to labour
    laws. Primarily, opening a factory is difficult task in India due to
    strict certification rules. Inspector raj still torment large section of
    factory owners. Moreover, Factory owners due to certain conditions
    prefer to keep their number of workers low. Further, India’s labour
    force is highly unskilled. Not much training opportunities are being
    provided. Failure of Apprentice Act to provide internship opportunities
    has further aggravated the problem. Recent push in manufacturing sector
    through Make in India requires large number of skilled labour force. For
    it, Skill India campaign had also been launched. But such schemes
    require statutory backing. By improving social security net cover and
    imparting skill, output of labourers is bound to increase.
    Internationally, signing of trade agreements such as TPP, RCEP has
    ushered in the era of WTO plus changes in labour laws. In order to align
    with the global changes, India must bring in labour reforms. Thus,
    labour reform is complimentary to our economic reform.

    Current Scenario and scope of improvement

    As mentioned earlier, labour force is overburdened with multiplicity of
    laws. The major laws primarily are Factories Act, Industrial Dispute
    Act, Apprentice Act. However, these laws do not reflect the requirement
    of present time and have become obsolete. For example, women are not
    allowed to work in night shift as per Factories Act. Now consider this,
    these acts do not talk about several basic utilities such as cold water,
    canteen facilities for workers. On the other side, the factory owners
    also face several strict regulations, certifications which hamper their
    functioning and also gives rise to malpractices. Further, since there is
    a threshold of number of workers above which strict regulation comes
    into play, factory owners avoid appointing large number of permanent
    workers. They largely depend on contract labours. Such practice is
    harmful in many ways. First, large number of workforce remains
    unemployed, even those who work as contract workers put in less efforts
    in work as they lack job security, also they lack social security net
    covers. Thus, labour laws need urgent attention.

    The foremost need is to codify such large number of laws. This would
    help in better implementation and adoption. Further, the acts need to be
    amended to meet the present realities. Incentives should be given to
    the factory owner so that they can increase their workforce and also
    provide sufficient security cover and training to workers. Role of
    inspector raj need to be minimised and self certification need to be
    promoted. Industrial dispute redressal needs an improvement which can
    provide amicable solutions. For the interest of workers, it is essential
    that their working condition improves. Basic amenities such as canteen,
    restrooms, cold water should be provided at work place. Special
    attention should be given to female workers. Minimum wages need to be
    improved. Social security net should be widened so that all
    workers(permanent and temporary) come under its ambit.

    Thus, in order to address such issues, central government has brought
    in several amendments in labour acts. Still, there’s a long way to go.
    Archaic and obsolete labour laws are probably one of the biggest hurdle
    in economic growth. But there is a fear that in order to promote
    economic activities, government can weaken the labour laws so much that
    it can become antithetical to labour interest. This is one of the
    reasons why several trade union orgainsations are opposing changes to
    labour laws. So, government should ensure that all the stakeholders are
    on the same page as far as labour reforms are concerned. Today our
    economy needs job. An explosive situation has arisen due to increasing
    number of unemployed youth. Manufacturing sector is being given a large
    push to provide jobs. But without labour reform, they wont be able to
    provide necessary results. Now is the time to rectify the mistakes of
    past. Let us strengthen our labourers who are the real bulwark of our

  • To satiate our hunger or to quench our thirst, we need to work. Like other countries of the world, India also had the problem of hunger and thirst as soon as human beings started living in societies, reason being less resources and more population. To avoid conflicts over resources, it might have been decided that the one who works will get as without pain there should be no gain.
    Henceforth people started to work to grab the opportunity of having ownership over the resources but later when it was seen that working for the resources only was benefitting to one and others were losing as they were being exploited in such ‘veiled work’. This might have given rise to the concept of labour that work should be measured in economic terms and the one who does more work should have more opportunity.
    So, the concept of labour is very old to India and its role in economic development is also not new. Also, exploitation of people for getting more monetary benefits by paying less is in vogue since ages. It started with Aryans (against defeated persons) and is still continuing. But the consciousness towards labour reforms is new. It started in the period of renaissance and travelled to India during freedom struggle for independence.
    Since their advent, Britishers sole motive was economic drain from India. East India Company was not merely transferring the wealth from India but it was using the services of Indians only to exploit Indian resources. Now to earn more and to transfer more, they had to take extra work at fewer wages, so they started exploitation of people.
    But bad things cannot prevail for long. Seeing the exploitation of people in the hands of foreigners made people more conscious about their fellow human beings. Premchand in “Godan” narrates very pitiable picture of how protagonist’s family became poor by paying “lagaan”(tax on produce),exploited by govt and then having nothing to eat. He presented heart wrenching picture at the end where protagonist’s family has to go for untraditional way to arrange for ‘godan’(a ritual in northern India where a person gifts a cow to Brahmin near his death for securing a berth in heaven).
    So, through novels, poems and newspapers, common people were telling about the exploitation. National leaders of the time were quick to grab the story and make it their one agenda. Many trade unions were also formed in the process. Labour reforms were called for and govt had to oblige at some or other day as their survival had become difficult in such national conscious regime.
    Starting during independence and continuing till today, leaders and politicians along with various NGOs and civil societies have been making attempts that people are not exploited on the name of work. They are trying to ensure that need of one does not become a gift for another from whom they can suck the labour for their development.
    Economic development is always desirable as it not only helps in economic growth of the country but also helps in raising the standards of living. But the cost involved in the development should not hammer the dignity of people. For this only labour reforms started for men, women and children too.
    Independent India ensured that its workforce is paid at least desirable wages through Minimum wages act, the conditions for work should be humane under article 42 and whether it is the unorganized sector or the organized one, number of working hours should not exceed more than 8 hours under Factories Act. Even if it has exceeded, employee should be paid extra wage with incentives. Yet, another law playing important role is Industrial Dispute Resolution Act. Further workers have been provided with right to strike and form union. Lastly,their retirement funds and pensions have been ensured through EPF,New pension Scheme and Aam Aadmi Bima Yojana etc.
    Apart from general laws,women specific laws like Maternity Act,Vishaka guidelines,Equal Renumeration Act and children specific laws like article 21A and not employing children below 14 etc have also been provided.
    But such protective attitude for men, women and children has made India an unattractive place for doing business and not an investor friendly. US has placed in priority watch list because of its less business friendly attitude. These reforms are also away from modernization where make In India and Digital India cannot be realized in principle. Not only this, the reforms of Post independence era have given very less social security coverage to unorganized sectors.
    Such lag will definitely not help in long run no matter today India is growing @ 7-7.5%.Because it hinders FDI and also damages India’s image at international level. Among all, the greatest loss will be that India will not be able to reap its demographic dividend as it will lose its window of opportunity with such conservative reforms. Recently a report has very clearly pointed out that India is experiencing jobless growth which is really unsustainable.
    Realizing the importance of new labour reforms and to put India on a sustainable economic growth, the govt again is now attempting for labour laws. It has learnt from the past when we over protected our industries, we lost and now when we don’t give any benefits to employers and investors then again we will lose due to such shielding because of less productivity at more economic cost.
    Thus, second phase of labour reforms has been started in India. Here benefits are not being extended only to industrialists or employers but to labours also.
    If we are allowing industries to fire workers at their will then we are allowing number of days under MGNREGA to be extended and Payment of bonus to be raised. If we are allowing 100% FDI in commerce for ‘Make in India’ then at the same time we are creating employment through them. If globalisation has caused our economy to be integrated and there is inflation then we are paying dearance allowance and EPF to minimize the effect. Lastly,to materialize Mckinsey’s report that if Indian female workforce is employed to its potential then its GDP can increase by 30%,if we are compelling our women also to work more then we are extending their maternity leave as well as giving thought to paternity leave.
    Nothing can stop a thing whose time has come. So how can market and worker driven labour reforms be. This may pinch for some time due to exclusivity but in long run it will help India in shaping new economic order. If few small labour reforms can make India a sweet spot even in global slowdown then it is not a difficult task for the reader to derive that what would be our economic growth track when complete overhaul of system which includes not only labour reforms but also eliminating corruption will be done. Perhaps sky would be the limit then where labour protection and economic development would be intertwined forever.

    For blogger friends(:)):

    • Shaktimaan

      hilooooo sachin bhai!!:)
      aap ka pdh k laga ki women and child labour wala angle b daal sakte the….. jo mene ni dala:(…… bt aap ne dala … thumsupp:)
      ultimate write up h bt thoda sa critic h bs>>> ki jb aap past ka labour bta rahe the tb sath sath hi sath aap tb ki economy b bta sakte the ki kaisi thi >>> dusra independence k baat direct labour laws aaye pr wo kaise fail ho gye bta na chahiye that >> qki aabi tak hm log utne ache se labour laws ko ful fill ni kar re >> jyada focus is decade se ana suru hua h….:):)
      baki sachi awsome tha >> godan ne bachpan ki yaad dila di >> tv pe premchang ki stories ki series aati hoti thi :D:D
      thanks brother PREM :D:D

      • bhai bahut sahi suggestions diye hai….mujhe pre independence me kami lag rahi thi par kaise dur karu u told me….other suggestions also valuable..will incorporate them in my essay…
        series ka pata nahi mai to books padhta that premchand ki..adhiktar buks green cover pe hoti thi :D…
        thank you…

    • vijay- the ray of hope

      Vivaan u have all right facts placed in essay
      my only suggestion is that u could have made it little interesting to read
      overall good attempt please review mine dear

      • ok brother my bad for not making it interesting,,,thank you

    • Jaya Swatantra

      Hey Vivaan… how are you and how is your preparation going on?? will review your for sure and also find time to review mine.. 🙂

      • jaya i m fine..prep going well..thanx….done with my review 🙂

    • minaxi

      Hello Vivaan..
      You are a good essay writer so perhaps my review will be like a experiment, since I may be wrong in my interpretations( plz correct me if you find, It is needed)

      1) I find this topic a economic topic which has social touch. But your intro- I think you went far back to describe the labour and that all.

      2) So in first two paragraph, you described labour, and in third you said, concept of labour is very old in is not looking a relevant and appropriate information(IMO)

      Although, i think, we are at liberty to put views in essays. But strong arguments are also necessary, I accept, past labour laws are to prohibit the exploitation of labours, but to waht extent they have succeed. Labour laws has become the tool in hands of trade Union leader to start strikes, which ultimately impact the well-being of employees in qualitative and quantitative terms. On the other hand, more than 93% of workforce lies outside of it’s ambit. Therefore these laws has not provided substantiate benefit to workers in short term. longer term impact on labour, i tried to cover n my essay.

      For industries, it has resulted into red-tapism and hampering economic development I liked the flow of your essay friend,
      I do not know, But if both side of analysis would have been in your essays, It will be a very good essay.
      Conclusion is very good.. Sorry friend, If you find me hypercritical, I just tried to search the area of improvement.


      • hi minaxi..thank you for wonderful review which proves u are an experienced player than experimentar 🙂
        1 and 2…though we should adhere to theme but line by line adherence is not required in essay i believe…anyways i got the message that u didn’t like intro..will try something more creative
        yeah on strong argument part i completely missed..i learnt those from ur big thank you
        dost b kahte ho and sorry b bolte ho :p…be hypercritical..i would be happy to learn about my mistakes…be hypercritical every time….
        thank you for genuine review…will try to improve

    • yogi

      Hello Khannaji 🙂

      My views :

      1. Intro: conventional style, but nice to read,

      2. Aryans, EIC, Godan —ate too much space of ur essay, it should not have been highlighted too much and more empahisis should be given to the latest issues.

      3. You have discussed the reforms that have already been taken + latest efforts of the govt. But not in much detail.

      4. Here when u are talking about the acts and reforms, u should go into some depth like when writing Industrial Dispute Resolution Act., touch some latest issues related to that, like proposal of raising workers limit from 100 to 300 for hiring and firing norms, etc.

      5. I think a para should also be written on which reforms should be taken so as to strive a balance between the welfare of the workers + benefits of the owners=> inclusive economic growth. That para would meet the need of suggestions which shows the optimism of the writer.

      6. One good thing is that u did not lose the simplicity in ur essay, which is very difficult to maintain in such objective topics, where people run after facts and unnecessary details. You have used the facts in limited amount, that is needed. Good job.

      7. Conclusion: happy to see that it is far better this time 😀

      8. Overall it was a good essay.

      9. Enjoy bhai, I have not written, truth is that I gave up while writing and now repenting , not a good habit for ias aspirants 😛

      10. Keep writing

      11. Thanks : )

      • hi yogi…how are u doing?
        1.thank u
        3.ok bhai
        4. and 5. yeah i missed on explanation of laws and faults and what should be our aim…so can’t agree with u anymore 🙂
        6,7,8-thank u pirablem…prelims ke time par tarah tarah ke realizations hote hai regarding need to repent….prelims ke baad ek jyada like lena ;P
        thanx a lot for review bhai….

        • yogi

          i m doing good bhai, just some horrible dilemmas between prelims and mains esp optional. Prelims shuru krna hi padega, abb paara sr se uper ja chuka hein.
          thanks bhai for post prelim advice 😀
          ATB 🙂

  • Shaktimaan

    “Labour Reforms in India and its Role in Economic Development”

    Thousands of serf labourers and indenture farmers, gathered to put demand of relaxation in front of British office. Because they were forced to grow indigo and other cash crops instead of the food crops which were necessary for their survival. Also these goods were bought from them at a very low price, and then suppressed by the ruthless militias of the landlords (mostly British). They were given measly compensation, leaving them in extreme poverty. Now in the throes of a devastating famine, the British levied a harsh tax which they insisted on increasing the rate. Without food and without money, the situation was growing progressively unlivable. Then an indigo cultivator, persuaded Gandhi ji to go to Champaran, where Gandhi ji resolve the situation with “satyagraha” (power of truth and non-violence). Here labour asked for reform which was “first” time heard by the officials.

    This was the event, which introduced the labourers with the policy of silent strike to bring reforms in their work culture according to their convenience. But this was not the end; in fact an ignition to burn all deforms and defects of labour structure. Unfortunate is that after british raj (independence), still approx 90% of workforce, working in the “unorganised sector” that means without social security safety net, without institutionalised wage protection and without any legitimise service tenure immunity. Thus, left them highly vulnerable to economic undulations like inflation; climate change like drought and flooding, which push them further to destitute / impoverishment and this cycle goes on ahead as vicious one.

    Lets’s try to understand this deprived condition of labour with layer by layer analysis for that, first we must know about labour intensive sectors, agriculture and manufacturing are those core sectors which engage maximum no of labours (unskilled and semiskilled), but as agriculture in India is mostly on substantive basis therefore only manufacturer worker counted as labourers. After independence, Indian govt to fulfil the “socialist” value of Indian planning, majorly focused on industrial growth and development to solve the problems of general poverty, unemployment, backwardness, low production, low productivity and low standard of living etc. but due to “import substitution” policy (replacing foreign imports with domestic production), licencing raj (govt permission before entering a business), corruption and infrastructural- fund constraints, dent on the manufacturing sector and economical growth was very deep thus left the workers dependent on it, for the survival and nation’s economy for IMF help.

    But 1991 LPG reforms too tilted toward service sector growth, here again negation of secondary sector led it to further destruction. Thus no new change and refreshment in pre independence laws, structure of mills and factories, provision of wage assessments and labour hours, lead to nation toward “twin-paradox” where india grows on growth chart rapidly but the capacity of accommodating more no. of workers is very low. So it become a situation of “growth without opportunities” .

    Now in 21st century, there is really a diehard need of reforms in several spheres of labour activities. Some vital refinements inter se, No 1, need to remove complexity as labour is concurrent subject, thus open to both state and union laws, and due to their overlapping nature sometimes accrue contradiction in growth proposals, thus halt progressivity. No 2, need to bring flexibility e.g. Industrial Disputes Act of 1947 stipulates that a firm with 100 employees or more cannot close down without government permission, thus such laws curtail the growth of a firm by forcing it to hire fewer workers and remain small. No 3, need to reduce cost of compliance as according to Factories Act, firms with 10 or more workers and firms which use electric power are required to keep records and file regular reports, though good for work culture but enhances the cost of small firms. No 4, need to bring unorganised under the legitimised organised institution so that their grievances, suggestions for betterment, provisions for social securities (EPF, Medical benifits), transparency- accountability will be incorporate with nations growth.

    Such ameliorates will be the right remedy for decades long wounds not only to workers but to economy. because these provisions fulfil the enshrined values of DPSPs; promote healthy socialism; arrest corruption; reduce clashes as strike (which in reality slows down the economic pace, threats human lives and damages public property); enhance labour productivity ; negate chances of crises which finally in turn boost economy with confidence, such tranquil environment also attract more domestic as well as international businesses to set up here, thus generate more employment opportunity, accommodate more and more labour and thus help economy to bound itself in the virtuous cycle.

    And time has come to be the part of this cycle as present govt currently announced “Pandit Deendayal Upadhyay Shramev Jayate Karyakram” which aims to modernise labourer activity with digital portal named “shrm suvidha”> to file compliance reports, inspection records and also enabled labours with unique pin to access monetary facilities. Such no. further connected with banks account and adhar no with bring huge clarity in transactions and help to curb black money. There is also provision of maintaining the ITIs and skill development centres with provision of better quality of teaching, training apprenticeship, thus such steps bring respect to blue collar jobs plus provide diversity to industries to choose best and according to their demand, employee. Also progressive changes in Bonus act helps to reduce the financial stress on workers. And if proposed Industrial Relations bill which focuses toward rubbing archaic laws and clubbing old fractured acts into single code, if enacted will definitely change the quality of labour life in each and every aspect thus helps to build the strong economic basis.

    Thus without recognising the very basic stone of the economic foundation, it is difficult to grow with al-round / magnificent persona, therefore due respect and courage which is the right of every labourer which s/he seeks from time immemorial, if want to consider timely we have to take pledge first to grow without biasness, without inequality and without any discrimination. Only then the labour and economy find themselves in the cycle of give and take from where they not only evolve nation toward prosperity but beautify the life of peoples living in it/ derives opportunities from it.

    • shakti
      1.decent intro and conclusion
      2.not really an essay it is….written like a GS answer…with same content by rephrasing sentences suggestive mode could have been avoided
      3.twin paradox…growth without opportunities…good one
      4.more emphasis on labour reforms than their role in eco development…use fundamentals of make in India and skill India etc….examiner ko dur se hi pata chal jayega u focussed on development aspect
      5.ur third last para was USP….
      6.govt k kuch positive steps b likh dete to aur accha ho jata….2nd last para mein thodi aur positivity was required
      nice attempt..flow was maintained throughout…..but i expect more quality…..pichli baar wala dhamakedaar tha….thank you

    • Eco-friendly

      bhai you wrote very good essay. After reading your I felt I missed out on historical aspect, post independence reforms, problems that u explained with some specific laws.
      Intro was great, Double paradox is nice, UAN, PDUSJK, i missed out…:P, nice conclusion too

      where to work-
      1) dont write in points (Insights can better tell)
      2) You missed on child labor, gender inequality, make in India.
      3) Economic development part can be little more enhanced (mine was mostly based on that)

      I will copy yours so that in future I will not miss such important points. Great essay bhai….keep up….:)

  • MJ

    Kindly review……..

    “” Labour Reforms in India and its Role in Economic Development””

    India being a democratic and country having one of highest demographic dividend in the world needs economic boost for becoming developed country.Labour is one of main pillar of the process of economic as well as industrial growth. But often labour factor is not paid adequate attention as important stakeholder. As projected by IMF , India will be the fastest growing major economy in 2016-17 growing at 7.5%, ahead of China.

    But labour reform has been grappled by slow structural reforms. The present government has come up with a set of new measures. After having brought in amendments to the Factories Act and Apprenticeship Act, another set of reforms have been initiated. Recently new measures announced, like unified ‘labour portal’, universal account number for EPF among others, are expected to help in doing business easily apart from helping others. This are expected to bring down the corruption and increase the Transparency and Cleanliness within the system.

    A large number of small and medium enterprises and firms do not become large because they don’t have the man power resources to handle the regulatory burden. The regulations in India are obsolete and outdated in 21st century . The wave of globalization and liberalization has failed to address labour issue in India. India is almost at the bottom of ranking 130 on the World Bank’s ‘ease of doing business’ index.

    Government should create more jobs, thus facilitating employment growth a partnership should be created between labour and management. #Make In India , #StartupIndia are move towards making India a Global economy and Knowledge economy.

    After numerous labor movements, workers getting voting rights, activism of International Labor Organization . Trade unions (like Bhartiya Majdoor Sangha or Centre for Indian trade Union) are pressure groups which aim to protect interests of labor through ‘collective bargaining’. Rights of labour needs to be secured. India has not ratified ILO convention on ‘domestic workers and child labour’. India should look towards ratifying other conventions and implementing them legally.


    The government needs to focus on major issues such as land acquisition, investment in human capital, the lack of regulatory consistency across states, improve manufacturing and agricultural productivity and, above all, plug India’s infrastructure deficit. Time and cost overruns have been a major bane for infrastructure projects. India have about 85 -90 % of the workforce employed in informal sector on which these laws are not applicable. Hence, a huge informal sector workforce is still outside the ambit of social security net. If “Make in India” is to be realised, then we have to work on improving ease of doing business in the country.

    Policy Priorities:-

    Policymakers in our country need to stressed on with structural reforms to alleviate infrastructure bottlenecks, facilitate a dynamic and innovation-friendly business environment, and bolster human capital. IMF pointed out, deepening local capital markets, improving fiscal revenue mobilization, and diversifying exports away from commodities are also ongoing challenges in many of developing economies. Fiscal consolidation and vertical devolution of financial resources has been recommended by 14th Financial Commission.

    Government initiatives like ‘Pandit Deendayal Upadhyay Shramev jayate Karyakaram’ , ‘National Skill development Mission’ will bring upon major overhaul of India’s demographic dividend. So that India can meet the global requirement of skilled labour workforce in the near future. Therefore, India can become a global leader in world by facilitating labour reforms which further leads to more sustainable and inclusive economic growth.

    • missionmode

      Hi! I can see your essay is very policy driven, which is great. There are some really important information points in the essay which have been spaced well.
      Some things you could do differently –
      1. You have focused on overall problems with the economy which at times is linked with labor. However in the second last para where you talk of FFC – it seems completely disconnected. Try making it more focussed.
      2. All the policy initiatives you have mentioned are recent – you could give your opinion on how you believe our labor policy/laws have affected economy so far. It is too factual and policy driven in some parts.
      3. As far as structure is concerned – Even before issues you have mentioned some issues like firms not becoming large enough or India not ratifying particular convention. You can structure it better.
      Keep writing!

      • MJ

        Thanks Missionmode for your valuable feedback…!!
        Yes, there are some loss of connectedness in some para…
        I will keep in mind all your suggestions in next essay… Thanks

  • minaxi

    “Labour Reforms in India and its Role in Economic Development “
    Labour is a valuable input for any economic activity along with capital, land and market.Therefore it is a resource, which if utilized properly can result in to rapid economic growth.India has vast amount of demographic dividend or labour market, it may drive India toward a rapid economic growth and poverty alleviation.

    However Indian labour market is highly segmented, though segmentation based on gender like make and female is prevent in every country, yet in India segmentation is more diverse and based on various factor, like rural-urban regional, language, education and skills, religion and caste and various sectors and class of economic activities and industries. There are formal workers and informal workers almost in areas of business.Therefore it create the opportunity and challenge for Indian economy.And various labour laws has been enacted so far to regulate this market.

    Since, Labour market is in concurrent list of constitution. Therefore to regulate the labour market of India, various laws has been enacted in past by central as well as state governments from factory laws, minimum wages laws to industrial dispute Act and various other acts also.And these laws were designed to regulate and ensure the wages, working conditions, social security and employment security of workers.

    But these laws were enacted decades ago, which do not cater the changing demand of economy. These laws were framed by keeping registered manufacturing sector in mind which only cover a minimal amount of workforce around 6-7% of workforce in it’s ambit. And now, major source of India’s GDP come from service sector and informal sectors provides the maximum number of employment to people. Foe, these informal sector is out of labour laws ambit, the working conditions, wages and productivity is very abysmal in these sectors therefore hampering welfare and well-being of employees.

    On the other hand, In today’s globalized competitive market, multiple and complex labour market is reducing India’s competitiveness in global investor’s view. India is losing investment to their neighbor. Decreasing investment is resulting in to decreasing innovation and consequently slow industrialization.

    Economic performance of a country is measured in terms of output generated during fixed time-period, overall productivity of incurred input and employment generation in comparison to GDP growth.And the evidences of overly strict and less flexible labour laws and regulation can be seen in the employment generation capacity of economy.Though India had gone through the rapid economic growth in first decode of 21st century, employment generation capacity went down from 2.62 % of GDP in 2004-05 to o.92 % in 2009-10. Therefore, despite having rapid growth, India’s youth remain unemployed. And in light of India, being the largest demographic dividend , where millions enter into work-force every year, it is very concerning news for policy makers. Since unemployment can eventually resulted into socio-economic turmoil of country which has potential to weaken the system.

    However, in past , Government intention to enact labour laws was to provide employment protection. Since employment protection reduces the amount of unemployment in tranquil time , although it simultaneously decreases the productivity of business which eventually lead to increase in unemployment during turbulent time.It also affect the willingness of investors and business to expand business and invest in new areas and innovation. which will directly improve the working conditions and employment opportunity for workforce.

    Strict and inflexible labour laws and regulations also affect the future perspective of economic growth. By looking at the some advance countries like USA and European countries, where labour markets are less regulated, business activities flourish more, and it provides revenues to government. Thus government has more funds to spend on social security and welfare programs like education, health , skill development which eventually lead toward the sustainable economic development.

    The need of labour reform has increased in recent time due to multiple reasons from changing economic environment through global and liberalized market conditions. India is a labour surplus country, there their is need to develop labour intensive and friendly industries, so that, India can utilize this resource effectively. And Make In India and start-up programs can be made successful if labour-laws are reformed according to demand of time and economy.And it will also improve the ease of doing business for foreign investors, who prefers India’s neighboring counties like Bangladesh and Myanmar due their lax regulations.

    China has also developed it’s industries by reforming their laws to attract domestic and foreign businesses. Effective and efficient labour laws will not only benefit business but also improve the working conditions and employment opportunities for workforce by bringing more and more industries in it”s ambit. It will also help to dilute the inequalities prevent in labour market by providing better working conditions and social security for women workers.

    The multiplicity of laws and related regulatory bodies is contributing into complexity of business in India. Therefore, first can be taken in a way to do away this complexity by creating single window system under the common headlines sets like Laws governing terms and conditions of employment, Laws governing wages and remuneration, laws governing social security and industrial relation etc. secondly uniform definition of terms like industry and works is necessary to do away ambiguity and chances of errors.

    MSME sector is need of hour not only from economic point of view but balanced regional socio-economic development of country. Therefore laws laws must be set in this way, which gave them enough space to work easily yet not provide the excuse to maintain the statuesque. micro enterprises must be grow into small, small into medium and medium into large. Therefore, Labour laws should not provide any incentive which restrict MSME to increase their economic activity.

    There is no denial that, various inefficient and rigid laws has hampered the business activity in India without providing any tangible and remarkable benefit to workers. There is a need to trade a balance between business requirements and workers’s nee. So that both these entities can work in synergistic and cooperative way for longer term economic development and support each other for mutual development of every stakeholder. It will result into increased competitiveness, innovation, investment and employment opportunity due to increased zeal of business for longer duration.

    plz review…

    • Deepak kumar

      Excellent. plz review mine if u get time.

    • vijay- the ray of hope

      Minaxi really from heart u deserve praise for such essay
      u included govt schemes labour problems acts and many more …keep on writing and let us benefit from u…
      I will give u 80/125 marks..
      Please review mine

    • amrendra

      nice, cover almost all points

    • amrendra

      the evidences of overly strict and less flexible labour laws and regulation can be seen in the employment generation capacity of economy. can u explain this line

      • minaxi

        Hello Amendra.. I tried to provide evidence too.. anyway. I was taking about employment elasticity.. which has come down thanks to strict and complex laws.

    • exhaustive coverage minaxi!!!..u will definitely score more for wide coverage but:
      1.labor reforms have their roots in history…dig it a little bit before coming to present..this will also clear ur point of Indian labour market is segmented and why such problems occurred..u visited history in bits and pieces which made the matter complex for me
      2.lack of connectivity among the paras…
      3.govt has attempted some reforms too…so rather than criticizing and giving solution all the way…some focus on positives would have enhanced the beauty of ur essay
      4.comparison with other countries was another positive point in ur essay..well done in that part
      very informative essay indeed…thank you …please review mine

      • minaxi

        Hello Vivaan…
        Yes, you are right… these areas can be included to make it more appropriate.
        Thank You..

    • missionmode

      Hi! a really good essay. You haven’t relied solely on numbers which is fantastic, it didn’t strain me to read this particular one. The few things you could have done is focus on historical perspective. I find a couple of your paragraphs not linked together – you could title them in that case. Also, more solutions instead of direction that the policy should take would be nice.
      Please do review mine!

    • MJ

      Hi Minakshi !! Good attempt… !!
      Your essay has included almost all the areas.
      But schemes part and recent government initiatives are missing.
      To improve upon u can add issue of Child labour in 1-2 lines.

      Please find time to review my essay ……Thank you !

    • Eco-friendly

      you have covered many aspects, included what foreign countries are doing, MSME para was nice, conclusion is also good. Stats given will increase your marks for sure.

      Where to improve-
      1) flow
      2) Add historical perspective
      3) Some government recent initiative can be highlighted and how they can improve conditions.

      All the best…….:)

      • minaxi

        Thanks Eco..
        About flow as well structure(which you did not mention in review) I am learning from your essay.Yes historical perspective is not adequately addressed.

        Thanks And all the best to you too.. 🙂

    • Aravind Varier

      Dear Minaxi ,

      1) India has vast amount of demographic dividend or labour market,???? this statement is incorrect ( India is having NOT having vast amount of Demographic dividend but a huge young population which can become a demographic dividend if properly utilized )

      2) second paragraph is good 🙂

      3) third paragraph is well explained ( especially the different types of laws passed ) 🙂

      4) so immediately you went on to tell about the deficiency in the labour laws ( i would suggest you to tell about the positives about labour laws and its impact on economy instead telling the negative aspects of labour reforms straightaway )

      5) In today’s globalized competitive market, multiple and complex labour market is reducing India’s competitiveness in global investor’s view……….. ” you could have explained this paragraph properly rather than giving a slight reference to it .

      6) the negative impact on the Indian economy by improper labour reforms is well explained 🙂

      7) Since employment protection reduces the amount of unemployment in tranquil time ???? can you please tell me about tranquil time ???

      although it simultaneously decreases the productivity of business which eventually lead to increase in unemployment during turbulent time. ( I feel this sentence is written as a part of repeating the same theory once again to fill the paper. please don’t write that is already mentioned in the previous paragraphs )

      8) how did you come to know that labour markets are not regulated in USA , European system ??? ( You should have clearly mentioned about the FAIRNESS in the labour laws in those countries compared to India )

      9) the paragraph mentioning with respect to china looks totally deviated from the demand of the essay ( i am able to see lack of flow and connectivity in these paragraphs )

      10) single window system ??? PLEASE BE CLEAR !!! ( this paragraph have to be improved )

      11) MSME sector is the need of the hour ??? ( you should have told about bringing in MSME sector under the ambit of labour laws to wider the benefit of labour reforms to more people which will ultimately help in economic development . I hope you got my point )

      12) conclusion have to be improved .


      1) Try to create a basic rough work in a piece of paper .

      2) try to form a basic structure ( don’t mix negative and positive aspects simultaneously ). I personally felt you are focusing more on the negative aspects of labour reforms . give a balanced approach .

      the main problem of mixing negative aspect and positive aspect lead to lack of connectivity and flow which very much felt in your entire essay .

      3) try to write a conclusion that is ending in a positive note and the way forward for future labour reforms .

      4) your comparison with other countries are based on weak arguments . you have to strengthen those arguments by telling ( those countries got benefited by certain types of labour reforms which can be included in India for more economic development )



      • minaxi

        Hello Aravind..
        Thank you so much to review essay.. 🙂
        Well, I was thinking, why someone not pointing out structure since in body part every thing in zig-zag way.. However, i made a structure on paper, which was somewhat similar to your structure. But could not apply it exactly in essay.
        well, In USA and european labour market are not that regulated as India, that is one reason they are demanding trade facilitation in India. And yes, i did not present strong argument backed by evidence here.

        About tranquil time point- well yes, here too clarity is missing.well, I wanted to write the examples when in rapid economic growth time, companies can afford the inefficient workforce, But when economy or sector is passing through depression of stressed situation they have to give up the workforce.

        Thanks, Aravind, I will try to improve next time. By drawing more easy to implement framework. And Perfect practice makes everyone perfect. 🙂 Hope to see your essay after seeing a attractive tailor.


  • Deepak kumar

    India is world’s 3rd largest economy in PPP term and by 2050, India’s economy could be the third largest in the world , in real term .Surpassed only by China and the U.S, according to a study undertaken by Goldman Sachs. India’s growth story is different from world and vast working age population is the most favorable condition for the economic development. This opportunity must be seized by modernizing its labor market. However, human development index is an important indicator of economic development,. India lags behind in that term . Countries like Srilanka and bangladesh have higher life expectancy at birth than india.

    Land, labor, capital and technology are the 4 pillar of economic development. A resource rich country cant become superpower without having skill labor force. Shortage of labor in USA, Japan etc is the worrying cause for them. Skilled Labor was an important reason for the movement of imperialist and capital power towards Asia and Africa in centuries back. Britain could become superpower because it exploited the labor force of the poor countries in the 18th and 19th century.

    Some of the current labour market regulations are a legacy of Fabian Socialism and colonial rule; others are a product of postcolonial bureaucracy . Despite having large population the participation of labor force in formal sector is very low and participation of women is a cause of concern . Some of the colonial law hinders the investment in the country. Eg;INDUSTRIAL EMPLOYMENT ACT requires employers to submit information such as work hours and wages to the government ahead of time for approval. Similarly, THE INDUSTRIAL DISPUTES ACT ,requires businesses to obtain government approval before firing large numbers of employees. In many instances, the process of doing so is lengthy and features copious red tape. As a result foreign companies choose to invest in other markets and employment generation shifts to other countries. Disagreement between trade union and state is also a issue. That can be solved by wider consultation and negotiations.

    Labor is in concurrent list , lack of interest by state govt is a matter of concern. Escept few states, such as Rajasthan, has paid no attention in this regard. Cooperation between center and states is crucial.

    Present govt has taken a number of reforms, including the doubling of the hourly overtime limit. Also, in order to keep pace with global technological advances, Scheme like Digital India can play significant role. Skill India scheme launched to provide required skill to huge workforce. Make in india launched to increased the share of manufacturing sector in economy and hence create the employment opportunities. The Shram Suvidha Portal was launched where employers can submit a single compliance report for 16 labour laws, a new web-based labour inspection system. Power of inspector to inspect dilluted in order to improve ease of doing business. However, india will have to a long way to completely remove the bureaucratic bottleneck from the system..

    The labour reforms are also linked to improving worker benefits — like providing for a minimum pension under Employees’ Pension Scheme; making Provident and Pension Funds portable; and increasing the maximum work hours. Huge amount of working force are employed in unorganized sector and they are exploited by the employers,. Migrated labor is the phenomena of indian economic development. The future and security of labor of at stake . Low wage labor cant afford to live with their entire family and the leave their family at native place. Emotional pain and suffering is also associated with it.

    Labor reform can provide labor a secured and prosperous future. The nutritional requirement of entire faimily cant be fulfilled due to low wages of labor. Infant mortality, maternal mortality, undernourished children and all poor HDIs are the result of low wages and exploitative nature of labor market. Life of women is associated with it. The dream of women empowerment will reamain on paper unless huge population of the country will not be provides adequate economic and social security. MNREGA was launched to provide employment in rural area . Large number of workforce are working under MNREGA who are unskilled, becoz the goal of MNREGA was to provide job opportunity to unskilled workforce. Labor reform can be linked with MNREGA and proper skill can be provided to them.

    Thus, the role of Labor reform is immense . 12 million new workforce enter every year in indian market. They cant be provided decent job and livelihood unless colonial labor law is not scrapped and modified. Dignity of labor is the dignity of country. The widening inequality in the country has a direct relation with the colonial laws. It must be reformed. The goal of becoming superpower cant be fulfilled unless each and every citizen is included in the growth story. Otherwise GDP is just a number.

    • minaxi

      Hello Deepak…
      Nice effort for first writing up..
      Now essay part- Intro can be consolidate. Otherwise examiner will get a feel that you are consuming words without any value addition.

      Land, labor, capital and technology are the 4 pillar of economic development.? I thnk it must be economic activity.
      Though your contents are good.. but clarity will come with time and practice.(I am also struggling with same problem)

      Second last paragraph is though related with labour laws but their are some grammatical mistakes which are resulting into factual as well as conceptual mistakes. and this paragraph if presented in better way can be proved as USP of your essay. 🙂

      Sorry friend for being critical, since I know, essay demand lot of efforts but I just tried to help you. You can also criticize ,y essays and it will help both.

      Thanks… 🙂

      • Deepak kumar

        Thank you so much Minaxi. i am here to be criticized and learn. Nothing bad about that. Will improve next time. Thnx:)

    • Introduction could be better without much emphasizing on India’s comparative economic situation. Rest is fine. Keep writing.

      • Deepak kumar


    • missionmode

      Hi! I feel you could have started off the essay better. It seems a bit random. Beyond that, i really like how you have structured the essay and there is a lot of information. You could actually cut down on the information a bit if you want to – it might just tire out the examiner. Further, while i can see you have mentioned what should be done – as in the direction our labor policy should take – you could also have added how you would recommend that happen. Overall, a great first attempt.. lot of knowledge! Please do review mine.

  • “Labour was the first price,the original purchase- money that was paid for all things.It was not by gold or by silver,but by labour,that all wealth of the world was originally purchased.”

    These words of Adam Smith,pioneer of political economy,perhaps measures the amplitude and importance of Labour in an economy.The whole concept of economy and market chain is incomplete without existence of labour.

    History tells us the story of trampled condition of laborers and oppressiveness of the responsible. In the early sixteenth century, situation was all same of labourers across-the-board. Workers and labourers have seen a trodden life during colonial era. They were forcefully migrated to Africa and other countries. They were deprived of the basic necessaries of life.

    In the course of time, though slowly but steadily,situations got changed.Upsurge of nationalism and feeling of arrogance and agitation,however,was influenced by European nations, put a pressure on tyrannical ideology of British. Trade Union Act of 1926 was the first visible outcome of this struggle which was actually a branch of Freedom movement. This act allowed workers to form trade unions and associations.This act not only developed unity in workers but also gave an idea of fundamental right to policy makers.

    The time after world war 2 was a period of economical ups and downs.A number of factories were going through downturns,workers lost their job subsequently. Industrial Disputes Act,1947 was introduced. This act required companies employing more than 100 workers should get government permission to fire a worker or close down a plant.This allowed workers and trade unions to intervene in company decisions.

    Ironically, after independence, no such significant reform was observed in labour laws as it was ideally expected. In fact, Contract labour act, introduced in 1970, which prohibited use of contract labour in core functions of company,actually increased share of informal employees.

    Many of the laws are archaic,dating to pre Independence creating an urgent need for an overhaul of the laws.There are multiple laws governing a single area.The outdated and inflexible nature of labour laws protects a handful of say 6-7 percent of workforce.

    It is worth noticing that reforms introduced till now were mainly socio-politically oriented but were far from changing the economic life of workers. Practically, it could not reduce the gap between organised and unorganized sectors.

    MGNREGA,introduced in 2005,was the first such attempt for enhancing livelihood security in rural areas.Though it might have been successful to achieve its objective but question then falter on improving skill and ability of the workers.

    No need to elaborate the importance of labour in economic development of India. The success of Make in India, Digital India is completely dependent on throughput of labour. Economic development is like a chair and labour is one of its columns. If this leg is week then stability if chair is in danger.Whole market wobbles when workers go on strike.In French revolution,it was the arrogance of workers and labourers which had shaken the plinth of its economy.

    This is the time when there is an urgent need of land reforms to make India economically vibrant and justify “Shramev Jayate”.

    • Deepak kumar

      good . plz review mine. suggestions are welcome

    • Satyaniveshi

      I shall admire you for your efforts, your Ideas are wel flowing. But, UPSC expects to keep closely to the subject of the essay.

      1. `No need to elaborate the importance of labour in economic development of India`. This gives improper impression for your essay, as the topic itself is for economic development.
      2. Your initial paragraphs are revolving around Labour, not `Labour reforms in India`

      • 1. Completely agree.

        2. It was quite difficult to reach word limit with such narrow length of knowledge and specific content about land reforms. Yo can see, even after those 2 paragraphs,I couldn’t make it large.

        Anyways,thanks for the valuable feedback.

  • Satyaniveshi

    Amidst global economic turmoil, India is seen as a ray of hope for economic stability. Owing to India`s democratic institutions and available demographic dividend it has been suggested that India has the ability to achieve high real GDP growth rates of 9 to 10 % per year. But, lack of both internal as well as external demand, combining with lower competitiveness is providing the challenge for India to achieve this growth rate.

    So, how do we achieve these growth numbers? One can be through institutional reforms, including banking reforms, improving efficiencies of government policies, improving functioning of private firms, etc. Combining with such reforms,major focus should also be on labour reforms. Post-liberalisation era in India has seen significant sectoral changes; service sector emerged as the biggest contributor to GDP, contribution of agriculture sector to GDP decreased, although number of people involved in this sector did not change significantly. It was argued that transitioning from agrarian to service based economy, lead to `jobless growth`, where income was increasing but concentrated in few hands. Hence, it was thought that there is a need to strengthen manufacturing sector, which can create more jobs.

    Post-1990, India has been seeing growth in both manufacturing and service sectors. More private players are entering industries and markets today. But, this has also led to the challenge of informal jobs being created. The percentage of people employed in informal sectors have increased enormously after 1990. More than 80% workers in India work in informal jobs today. Informal labours generally have no loyalty to companies, and companies are also unwilling to train them, which in turn affects production. This leads to lack of competitiveness of Indian products abroad.

    The causes for growth of informal jobs is stringent labour laws, has been argued by many. The inability to fire incompetent individuals, forces many employers to take contractual workers. Also, many small firms do not have sufficient expertise and available information to deal with labour laws. Hence, they prefer informal workers in order to avoid such laws. And, the next issue comes with improving employee`s productivity. Here, also smaller firms do not have sufficient expertise to train individuals.

    Hence, to help smaller firms and to provide `good jobs` , or formal jobs, government`s intervention is required. By simplifying labour laws, and providing single platform to check if labour laws are followed, may decrease number of contractual labours. Next, comes the way to improve productivity; Skill India along with Make in India and Start-Up India can provide sufficient impetus to this.

    In Make in India, India is trying to get Foreign Direct Investment to develop manufacturing in India. The labour force for such industries is skilled labour. Through efforts of government`s skill centres and with help of big multinational companies` skill training programs, we can improve the employability and productivity of Indian labours. Such skilled individuals can further start their own businesses, which shall be supported by Skill India campaign to further improve business environment of country, and increase number of formal jobs.

    Owing to federal structure of Indian political system, state`s intervention is equally important. Improving competitive federalism is important. State government bringing big companies help the labour in two ways. One is the number of employment generated, and other is the experience gained through such involvement. For example, even if a cycle manufacturing company is opened in a state, it makes it ready for the next step to be a car manufacturing state. This example was sell proven by China, which started with manufacturing electronic parts like connectors, headphones etc. and now is one of the biggest importers of mobile phones.

    Co-operative federalism and Make-In India, are promising in improving employability and producing good jobs. But they might not be able to provide inclusive growth. Some further steps, like changing spatial distribution of industries is required. Steps to encourage textile industries to lower tier cities can be an example to it. This shall increase the income of such cities, and allow women of such cities to contribute to the GDP of nation. Also creating food processing units for fishes, fruits, vegetables etc. will provide more jobs for women. And, such women can be trained through Skill India campaigns, or provided finances through Start-Up India.

    Increasing privatisation shall bring one big challenge to the lower and underprivileged classes of society (reservation in jobs). To overcome this challenge, India needs to improve its existing framework for education, and also take special actions while implementing Skill-India and Start-Up India.

    The role of education and framework for education is also important to understand about Child Labour. Apprenticeships and children working within family businesses should be seen as a kind of education provided to them. But in any case, special care should be provided to them, in terms of nutrition and basic elementary education.

    Thus, the trio of Make in India, Skill-India and Start-up India, along with competitive federalism has the ability to reform labour`s productivity and India`s GDP. But, these reforms should also take care of the weaker sections, including women, children and underprivileged classes.

  • vijay- the ray of hope

    Please review it……..

    • minaxi

      Hello Vijay….
      Today.. you did not quote any thing.. 🙂
      Friend.. try to write little bold fonts,, some time your writing is so cursive.. it take lot of efforts.And i think.. pages are not uploaded in sequence. plz check.
      Any way.. intro and content of intro(howmuch pages i have read) are good.. But overall review of essay can not provide right now due to above mentioned problems.

    • 1.starting was sort of incomplete…rather than question arises u could simply say why we need reforms when we are growing or why reforms when we are passing laws…use if ? itself suggets u are raising questions….so use of word question was not needed as per me
      2.para of why reforms are needed in 21st century may lead the reader to ask that do u want to say that reforms were not needed in 20th-19th century just because there existed no one…so no confusion?….so again problem in sentence formation
      3.there is no connectivity among paras….when govt was taking reforms kenyes was uncalled..similarly MNREGA and many more….
      4.ur content was awesome….mention of justice etc,cooperation among ministeries were takeaway for me
      5.some mention of role of reforms in economic development was required explicitly…..
      try to bring connectivity in ur ideas…nice attempt in terms of content

      • minaxi

        Hello Vivaan.. Plz review my essay to if find it possible.

  • doofus

    Please Review My Essay :

    Indians had suffered much at the hand of British colonialism and therefore socialism became one of the founding principles of our country. It made exploitation of workers at hand of employers, be that industry or zamindars or any body else, against the basic principles of our constitution. After independence bonded labour was abolished. Small farmers became as independent as the big ones. Government also started heavy industries that gave employment to many. The guidelines and circulars of such factories and industries were so designed that no worker gets under undue threat. Labour laws were framed such that even the private employers were put under check. Unions were not only allowed, but promoted and given political backing. This led to security to workers but the industries and their output started suffering and people became wary of opening new enterprises. Coupled with a number of other factors it led to financial crisis of 1993 and the opening of country markets and started liberalisation, privatisation and globalisation.

    After 1993, the market and India’s GDP started growing at faster rate. However the growth that begun was not holistic. Services sector lead this boom. It is now realized that even though the economy grew, there were gaps. Unemployment continued to remain high. While a section of skilled professionals are getting high salary, people who had less skills were not contributing in anyway to the economy. The country has not been utilizing its demographic dividend to its full. Unlike China and South Korea, where the manufacturing sector led the growth, we do not have much presence of manufacturing. Manufacturing provides job to many. Skills required for a manufacturing plant varies from highly skilled to very low skilled job and hence manufacturing can lead to employment of poor and unskilled sector. Even in software sectors, we are registering less number of entrepreneurship eg Google, Facebook, WhatsApp and others have shown tremendous growth and employed many in United States.

    So why are we stuck behind ? There are many issues – eg. it is difficult to get the bureaucratic acceptance for starting new factory, there are problems regarding land acqusition and others, but one important hurdle is the strong labour laws. A shield devised to protect the workers is working against them. In India it is very difficult to fire a worker, once he/she is hired. This creates disincentives for companies to hire new workers even in times of demand. Strong labour laws associated with large companies are also attributed as one reason why small and medium enterprise avoid expansion. Entrepreneurship becomes difficult, because one does not know beforehand how better the future will turn out to be, and hence entrepreneurs are reluctant to venture in this area, those who try, face hurdles of government registration, labour inspection and others. Also the quality of education in India is low, and it does not prepare people for job. So many engineers and management professionals pass out every year, but most of them are considered unemployable. Unions also create a lot of hurdles, few years back a large group of workers created chaos at Maruti’s campus and they killed one of their executives. Such incidents become strong deterrent for setting up of new industries.

    A complete approach to overhauling these problems regarding labour force of India is termed as labour reforms. Labour reforms effect economy in multiple ways. Many people get job and this leads to increase in GDP, it will also mean a decrease in poverty and subsequent decrease in subsidy expenditure. It will promote new companies to be set up, it will save us on the import cost of many items when we start producing them locally. Entrepreneurs with innovative ideas will save us the royalty that our companies pay for using patents of other countries’ companies. The tax that will accrue can be used for further enhancing the employability of the work force.

    Government has started working in this direction. For example Deendayal Upadhyaya Shramev Jayate Yojana aims at reducing harassment by labour inspectors. Government has also introduced programs such as USTAD and SETU for skill enhancement for self employment. Also, Pradhan Mantri Kaushal Vikas Yojana aims at making people more employable. Programs such as NPTEL, SWAYAM etc aims at providing better quality education. Also schemes such as Start Up India, Stand Up India will promote new companies to be opened up easily, these will absorb the newly skilled work force. Females, who can almost double the work force, are away from it. Most girls are either not educated or less educated, and families do not promote girls to do jobs. Government has taken initiatives to promote education of girls. Different governments now reward girls who clear intermediate examination.

    At the same time government has also ensured that the working class does not remain vulnerable. Schemes such as Atal pension Yojana gaurantees a minimum pension for the workers. Pradhan Mantri Suraksha Bima Yojana and Jeevan Jyoti Yojana ensure that sudden tragedies do not break the finances of workers. Government also looks to take care of special conditions of women by making paid maternity leaves mandatory and putting in place strict mechanisms to check harassment of women at workplace.

    Implementing schemes is a lot tougher job than putting them on paper. The working of labour inspectors, skill providing institutions should be made more organised and predictable. Leakage of money earmarked for skill enhancement must be checked. “Digital India” can help a lot in this direction. Objective monitoring of records of company, monitoring of their work environment, imparting skills to remote areas through free audio-video lectures can help in this regard. The government is working, but labour reforms is in our own interest and we must do our part. It becomes our responsibility to develop our skills, make use of facilities available to us, work efficiently and effectively and fight against slightest instances of exploitation.

  • Fazil Mohd

    Labour Reforms in India and its Role in Economic Development

    Right from the days of the Non-Cooperation movement, one block of Indians have stood solid in the nationalist movement. They did this out of a sense of patriotism and also because they were one of the most exploited communities under the British. Subject to long harsh hours, terrible working conditions and meagre pay, they saw the national movement as a liberator of their chains of drudgery. These blocks braved lathi charges, firing by police, mass arrests and threats to life, property and family. But post independence much of their stellar role has been relegated to history, and though some steps have been taken to better their living and working conditions, India still has a way to go before looking them in the eye and telling, ‘we’ve given you what you want’. These blocks are the labourers and workers of India.

    Our constitutional framers, in all their wisdom, chose to include various pro-labour clauses, especially enshrined in the Directive Principle of State Policy as the equal pay for equal work clause, and clauses to better the conditions of workers. And eventually some of these were made in laws by the parliament like the factories act 1948, equal remuneration act 1976, Payment of Gratuities act 1972 and Maternity benefit act 1961. Further, the Judiciary too has played the role of saviour for the labour class, especially women labourers with the landmark judgement in the Vishaka case which resulted in the prevention of sexual harassment of women at the workplace act 2013. All these laws on paper are very impressive and not only that, if implemented diligently, they could really make the difference in the lives of millions of labourers. But, India as a country has chronic implementation issues and not only that, many of these laws have been abused time and again without punishment to the offenders due to our slow and lethargic system of justice delivery which has had many labourers asking whether it is even feasible for them to keep up a legal battle for 4-5 years at a stretch with their economic means. All this leads us to some questions like, what kind of reforms are required as of today? Are the old laws still strong? How do we strengthen implementation of the laws? And lastly, what role can labour reforms play in economic development? Let’s answer these one by one.

    The kinds of labour reforms required in India today are mainly constructional reforms which build on the existing framework of theoretically sound laws, strengthen them and plug any loopholes they may have left. The main characteristics of such reforms should be that they should not be ad-hoc knee jerk reactions, should be constant, welfare and productivity oriented and lastly they should reach the intended beneficiaries. The recent government ‘s decisions regarding the withdrawal limit of the EPFO is a case in point of how reforms if not done with sufficient background research could lead to popular angst and to their withdrawal. Reforms in the labour sector should also keep in mind the growing economy, challenges, new classes as of ‘labour’ (Ola and Uber drivers for instance and delivery boys for various chains) and ways to incorporate the interests of all within legislation. An important precaution to be made is to ensure that we don’t pass lax labour laws in the quest to attract more FDI.

    But passing legislation is just one piece of the puzzle. The bigger problem is implementation and how does one implement laws in such a vast labour market that too with majority of the working class in the unorganized sector? The answer would lie in finding the right balance of regulation, incentivization and Promotion. Regulation by institutions like labour departments for various industries, their inspectors and field officers and also surveyors and assessors. Incentivization by offering tax rebates, faster approval for new projects and reduction in prices of utilities for a fixed time as incentives. Promotion would be the most critical component of improving implementation as it would mean reaching out to the grassroot workers, making them aware of their rights and legal recourse available to them in case of abuse. Promotion of adherence to labour laws could also be done when government enterprises set an example and workers there are used to spread the word to the rest of the economy.

    Globalization has made the world hyper competitive and due to this many facets of human development have been ignored by nation in their quest to become the workshop of the world. The plight of firecracker factory workers in Sivakasi and of Garment workers in Dhaka and Vietnam show that these are not issues limited to any nation. But, such exploitative policies are not good for the overall development of any nation, especially a nation like India which not wants to become the manufacturing and skill capital of the world. Therefore, it is time our labour reforms reflected our intentions. Ideally, reforms should include elements to skill labourers, extend basic health and insurance benefits to them, cover the unorganized sector and make sure that violators are prosecuted swiftly and fairly. This has to a certain extent been addressed by the ‘Skill India’, Atal Pension Yojana, National apprentice training scheme 2016 and the soon to come National Insurance Scheme. But India has still some way to go in the implementation of these schemes and in their spread to the entire geographic spread of the country. Economic growth and development, usually follows human growth and human growth in the working class can be achieved quickest by labour reforms. We should also adopt best practices from our friends in Japan, Singapore and Korea who were all underdeveloped and sickly nations in the 1960s but through diligent initiatives of human growth, have made their economies much more competitive than their physical size and resources permit.

    Last but not the least; being followers of Gandhiji, we must remember his concept of trusteeship. Though we do not and cannot apply it in it’s entirety today, we must remember that government is a trustee of people’s power and labourers and workers and their families and dependents make up a large share of people. So their trust in the government should be vindicated by passing beneficial labour laws, so should our expectation of economic growth. It is time India came of age as a power, and any nation is built on the shoulders of its workers and labourers and this is the future envisioned by our leaders past and present.

    • Fazil Mohd

      1079. PLEASE REVIEW
      please take some time out to read, and more importantly let your thoughts be known.
      Happy Labour Day

    • gomuki

      u have not answered the demand of the question…. pls check others answers

      • Fazil Mohd

        could you please elaborate as to where i could improve

  • sankar


    Like other component such as land, capital and Technology, labor is one of the most important tools to facilitate smooth and sustainable economic development of a country. As the proverb, ‘WORK IS WORSHIP’ interprets the importance of work, so it can be said that the workers are worth to be worshiped. Here, sense of worshipping workers means provide them equal say, due right, maximum freedom and comfort to present their rightful demands and bargain for the same in order to live a happy and satisfactory life.

    Hence, it is in this regard, labor reform is envisaged and some reforms have been done in India in order to alleviate workers from such deplorable conditions by providing them right to job security, decent wage, platform for grievance redressal and right to union to bargain for their demands. Labor reform has done a tremendous job in the socio-economic and political wellbeing of labour class.

    In the economic sector, labour reforms essentially mean taking steps in increasing production, productivity and employment opportunities in such a manner that the interests of workers are not compromised. Essentially labour reforms include training, skill development, updating knowledge base of workers and teachers and redeployments. Labor laws are also concerned with rights of trade union rights of workers, industrial relations and job security and policies relating to wage, bonus and other incentive schemes.

    Before moving to labour policy in the reform era of 1990, it is prudent to make one observation of Indian labour market. Indian labour market is characterized by a sharp dichotomy where one finds that a small enclave of organized labour is strictly being regulated. On the other hand, a large number of establishments operate in the unorganized sectors where labourers cannot organize themselves to pursue their common interest due to various constraints. Most importantly this sector is virtually free from any type of outside regulaton and control with little or no job security. Thus this sector provides ‘too little to too many’. Further wage is ‘too high’ in organized sector and ‘too low’, even below subsistence level in unorganized sector and thereby presenting the miserable condition of Indian labour markets. This dualistic set up suggests how far the Indian labour market is fragmented.

    Social security to organized labour in India is provided through a variety of legislative measures. These are payment of compensation to workers in case of industrial accidence and occupational diseases, provident fund, dearness allowance, health insurance, payment of gratuity, maternal benefit and loans at a very cheap rate.

    Another major importance of labour reforms is the right to form trade union. As per a trade union act in India, any seven employees could form a union. This has fostered a sense of participation and cooperation to workers’ mind and has enhanced productivity and interest in discharging their works. But it has also become a major tool for frequent strike to obstruct industrial work in order to fulfill their demand. But the growing political orientation and inter-union rivalry has also marred the very purpose of trade union, and it takes form of frequent labour strikes and loss productive time.

    Despites all these lacunae, labour reforms in India has alleviated many deplorable and inhumane condition of labour forces by removing the unsocial and discriminate attitude of reserving some particular jobs for some particular caste only such as tanning, manual scavenging, cleaning toilet at railway and septic tank at home etc. labour reforms also works in the prohibition of child labour, safety and security at work place, decent wage and many other things to the wellbeing of workers.

    The introduction of MGNREGA in India has played a leading role not only in providing guaranteed jobs. This demand based guaranteed jobs have also saved workers from the clutch of money lenders, Zamindars, indentured labour, bonded labour and beggary etc. the role labour reforms has been seen in almost every sector of Indian economy, mostly in agriculture and allied sector, mushrooming service sector and other labour intensive sectors. In the post LPG era, Indian labour market has become the drivers of global economic development and in return has benefitted Indian economy through their remuneration. It is the result of labour that India has been pursuing as one of the rising economic power in the world.

    Keeping in mind the importance of labourers to Indian economy and improving the well-being of workers, the government of India has recognized following rights of workers as alienable to every worker. These are; right to work one’s choice, right against discrimination, prohibition of child labour, right to social security and formation of union, right to collective bargaining and participation in management.

    Along with the above recognition, the GOI will have to do more other jobs. These are to ensure the same socio-economic and politic benefits and privileges should accrue to the workers of unorganized sectors of Indian labour sectors. There should be a clear distance between the labour genuine demand and that of politically motivated one. The government should ensure the speedy redressal of labor related grievance by keeping in mind the due demand of labourers. Further, the government should develop an attitude of participation and cooperation by taking advice and suggestion from trade union and participating in decision making of the country. The government should also ensure timely payment of wage, speedy redressal of grievances, just and humane work condition, reward for excellent jobs and respect for one’s capacity and knowledge.

    Hence, to realize the demographic dividend, India has to work on making a very robust Indian workforce which not only cater service to the Indian economy but also to the ageing world population. In realizing this dream, India has to imbibe the motto of ‘work is worship’ in the spirit and nature of Indian policy makers.

  • Jaya Swatantra

    Labour reforms in India and its role in economic development… Please review!!

    Shanaya’s father runs leather industry. She is a research scholar doing research on labor reforms in India. Once she visited the industry with her father as she had some queries to be asked from the employees there. She became utmost happy to see the state of affairs and positive answers from the employees regarding their working conditions, skill training ,enhancing knowledge base, perks and packages and redressal of grievances .Perhaps this was a fabricated picture which she received but she had to go there without telling after few days and she was stunned to see the real picture. All the employees were on strike demanding fair pay and regulation of working conditions. They were made to work for extra hours without any benefits. Even leaves were hardly granted and they had to use the washrooms which were not being cleaned for many days. No social security and the situation was really dismal.

    As she was leading protagonist of labor reforms. She promised to talk regarding all these sorry affair of states to his father, where she had a deep discussion regarding labor reforms and its role in economic development with his father where she left no stone unturned in letting his father realize the importance of employees welfare.

    In the evening she went to her father to meet him pretending she does not know anything about the industry.

    Shanaya- Papa, as you know I have to complete my theses by the end of the month ,I want your view points regarding importance of labour reforms , its importance?

    Father-Its indeed a pleasure Shanaya to have a discussion with you regarding labor reforms in India..

    Shanaya -My first question to you, what is labor reform?

    Father- Shanaya labor reform has wide connotations .It means taking steps to increase production, productivity, employment opportunities in the economy while protecting overall interest of labour.

    Shanaya-What do you mean by overall interest of labour?

    Father-It means skill development, retraining, redeployment, updating knowledge base, enhancing leadership skills. labor Reforms also include labour laws reforms.

    Shanaya-May I know about acts regarding labor reforms in the past ? As I know about recent reforms. Acts reinstated in the past would help me to do a comparative study and conclude better.

    Father-Ok Shanaya let me tell you some of the very important acts –

    1.Wages boost the morale of the employees .Art 43 ensures right to living wage and conditions of work ensuing a decent standard of life. So wage regulation becomes utmost important.

    Payment of Wages Act 1936-Under this act, employees should receive wages on time and without any unauthorized deductions. Section 6 requires that people are paid in money rather than in kind.

    Trade Union Act 1926—It provides for registration of trade union of employers and workers.It confers legal and corporate status on registered trade unions.

    Minimum Wages Act 1948-For fixing/revising minimum rates of wages for employment. The minimum rates of wages also include special allowance, Variable Dearness Allowance which is revised twice a year linked to Consumer Price Number.

    Payment of Gratuity Act 1972-Paid to establishments which have more than 10 employees. Gratuity is paid to employees if he or she resigns or relieves .

    Payment of Bonus Act 1965- It applies to enterprises involving up to 20 employees.Bonus being paid as according to the productivity of the employees. The minimum bonus of 8.3% is payable by every industry and establishment under the section 10 of the act.

    The Contract labour ( Regulation and Abolition ) Act,1970- A contract labour is a person who is hired,supervised,contracted and remunerated by a contractor ,who ,in turn is compensated by the user enterprise.The concern to improve the working and living conditions of contract labour and the Supreme Court of India’s observations in the case of standard vacuum refinery company Vs their workmen,resulted in the enactment of this act.

    Shanaya-Yes papa thanks for telling me all this now I would like to add my share of knowledge regarding recent reforms like Shram Suvidha portal ,under this government would allot Labour Identification number to nearly 6 lakh firms providing e-filling of annual returns by the employees

    UAN ( Universal Account Number Scheme)-for all provident Fund contributors which will allow portability and online tracking of PF benefits.

    Random Inspection Scheme-To bring transparency in labor inspection.

    Apprentice Protsahan Yojana-will support manufacturing units by reimbursing 50% stipend paid to apprentices during first two years of their training

    Revamped Rashtriya Swasthya bima yojana, Protocol on trafficked child labour, Protection of the interest of women workers, Equal remuneration act( 1976),social security schemes insurance and medical benefits, and development of necessary skills under skill India programme.

    Father- Shana, there are too many legislations regarding protection of employers indeed. May you please tell me the role of these labor reforms in economic development.

    Shanaya- Yes papa changing labor rules to make it less rigid, a country may create more jobs, reduce the duration of unemployment, increase productivity and ultimately achieve economic growth. Most economically successful countries all have flexible labor regimes and vice versa. Even humane and just conditions of working act as motivating factor on employees to work efficiently and boosting overall productivity.

    Father-Thanks Shanaya for making me aware of all these things and now I realize my mistakes which I commited while running leather industry. I will talk to union of workers and resolve the problems as early as possible.

    Shanaya made father realize the importance of employees welfare to his father. But the story does not end here .The real problem lies in turning laws in books to laws in action. The private and unorganized sector does not comply to all the rules and regulations strictly. Why skilled labor is moving out of India? Why is brain drain occurring?. As they are paid more and ensues better living and working conditions. laws in India are too much complicated. Harassment of juveniles, bonded labors, migrant workers has posed severe threats to the economic growth. Despite enactment of child labour ( Prohibition and Abolition) Act still child labors are being exploited . Sachar committee recommended legislation for inclusion of workers on boards, however, this had not been implemented. Sex discrimination too occurs at work place.

    If India wants to raise its bar of economic and inclusive development. Loopholes in turning the enactments to action must be plucked out sincerely and let the employers back employees in realizing their worth in the organization as this will help create a bond between the employer and employee which maintains the stability and credibility at the top. Laws may be flexible and employee friendly to help in retaining them for long and securing the money involved in their training.International labor conventions need to be adhered to in the era of liberalization and globalization in order to head for inclusive economic development.

    • gomuki

      some inputs:
      u tried to present in engaging way, for me its boring. While writing essay first we need to bring out the context of the question. So you can start with how due to rigid labour laws many companies are shifting their bases( because vietnam, philiphines are giving tough competetion with easy polices). So to succeed in Make in India we need to attract international investors for that what kind of labour reforms are required… from industries perspective —–Industrial disputes act( removal of employee only after state permission),,, contract labour act( employer cant change designation of employee) and factories act ( no flexible working hours ) and from labours perspective…..what all are needed.

      you could quote rajastan model and women labour perspective and due to rigid labour laws industries are not interested in hiring regular workers, so informal sector is growing. Trade unions lobby and their linkage with political parties ( for eg: BMS dint protest against bjp reforms as it was affiliated…….

      China labour cost is growing how we can use it to our economic development through labour reforms

      in solutions we can follow german model where labour are part of decision making, policy designing of industries which is also mentioned in dpsp … which is a balanced model.
      There are many other important points to mention… sorry i am lazy to type ….if you dont convince you can ignore….

      • Jaya Swatantra

        Thanks a loads Gomuki.. you points are really worth even i am not contented with this essay… thanks a loads for value addition .. may i know if you wrote??

    • jaya
      1.i would not endorse such writing forms especially in such economic essay which has very diverse content….being UPSC aspirants we are expected to present some mature content
      2.most of the essay revolved around labour laws but topic is about labour reforms…connecting laws with reforms was required here…agar examiner geography/philosophy ka banda hua to?…these sole mentioning if these laws will be irritating for him
      3.role of labour laws in economic development….unemployment,producitvity etc could have been extended
      4.analysis of some reforms would have made ur essay fulfilling the demand of topic
      keep writing 🙂

      • Jaya Swatantra

        yes Vivaan… even i am not contented.. will work on the points told by you… too many flaws… 🙁

    • lolo

      hello jaya your essay is good but presenting in conversation manner seemed little different and also overloaded with information only as framed in question answer format….is Economics your optional…but writing this much is in itself a great effort…

      • Jaya Swatantra

        Thanks but not a worthy piece.. will improve.. thanks for review.. 🙂

    • BRK

      Don’t adopt the story mode all the time. This essay required factual weight and analytical depth. Both these factors can’t be brought in with desired effect in the story telling mode.

      • Jaya Swatantra

        Agree… 🙂 will improve…

    • yogi

      Hello Jayaji : )

      My views:

      1. Starting is good, and clearly brings out the context of the theme.

      2. The list of all the acts, did not appeal much, why would an enlgish teacher like to read this list of acts? If u wanted to write then restrict to 2 or 3 acts and explaining the role played by those acts in the dev. This would meet the need of depth in the essay .

      3. U have left many latest issues related to the labour reforms. For example, amendments in the Industrial Dispute Act regarding raising the limit of workers from 100 to 300 for “permission from govt for hiring and firing ” etc. Similarly u could have talked about the need to amend the section talking about prior notification to workers about the changes to be brought in the factories that could lead to loss of workers job, eg if a firm want to brings technological upgradation in its machines then as per current laws it must give prior notices to the workers about the changes. For obvious reasons workers would protest against such measures, this results in technological backwardness of the firms.

      4. The main conclusion of the essay should be to have a balance between the interests of the workers as well as that of the firm owners so as to pace up the industrial growth along with the welfare of the labours. This balance is somewhat missing in ur essay.

      5. Again when u mentioned the Shram suvidha portal and all that , this was more or less listing of the facts. U could have blend them together in a nice para where u could have brought out their role wrt to both workers and owners.

      6. Second last para, was very well written, that touched the core issues of labours

      7. Conclusion is good, but mentioning International labor conventions in last line narrowed it down to rules and regulation . You should have given a broader aspect here as a concluding line.

      8. Glad to see that u wrote the essay and did not remain in comfort zone like me, who gave up while giving an attempt to write the essay. An upvote for the attempt. 😀

      9. Keep writing,

      10. Om Shanti 🙂


      • Jaya Swatantra

        Thanks Yogi ji for the review… agree with your points …i tried but it is flooded with so many mistakes.. lol.. 🙁

    • Isha

      Hello Jaya, my views-
      Essay was more focused in balancing the content with the story. Too many schemes back to back will make examiner to skip reading your essay. Being a pure eco topic you need not weave it around a story. Be straightforward and start with a subtle tone intro. Also labour reforms isn’t just about labour laws.

      Newly proposed Labour code- you could have discussed that its a long pending recommendation of the committee and its been more than 10 years. Besides that make a structure- like before independence, post independence, before 91 reforms, post that- pick up one heading and talk about it that how come labour reforms in that era affected economic activity. You can discuss about the characteristic of labour market in india- the specific problems- in fact you could start your essay with this.
      Its a purely factual essay- very less probability is there that such a topic would come BUT we should prepare, nevertheless. So be ready with something unique.
      I hope before sunday you will rethink about this topic and its rough draft once.
      ATB 🙂

      • Jaya Swatantra

        Thanks a loads dear for the review… yes certainly… 🙂

  • lolo

    1st essay on Insights….” labour reforms in India and its role in economic development”
    There are four pillars of economic development land , labour, capital and entrepreneur. Emerging economies of the world trying to focus on each of the pillars. Same is the case with India on the one hand India is proposing to have a sound land acquisition policy on the other it is trying to bring more Foreign direct investment to help removing capital deficiency. we have start up India programme to promote entrepreneurship then comes the labour in the line of reforms. labour laws are made by government to protect the worker’s well being at the work place like working hours, maternity leave, Hiring and dismissal , leaves pensions etc. and also to enact what is provided by our constitution.There are certain provisions related to worker’s right in the constitution like article 16 provides for Equal opportunity in Government jobs,article 19 provides right to form union but not to strike,article 21 the right to live with human dignity, most important article 23 prohibits ‘bonded / forced labour’ and art. 24 Child labour and many others Free legal aid, health of workers,Social security during unemployment ,humane conditions of work,Maternity Relief.Government from time to time made laws regarding directive principles and protected the interest of workers and took special attention to women and child labour. To a greater extent India is trying to protect the rights of workers who are engaged in works considered as no work at all like manual excavengers ,surrogate mother’s etc.
    —- labour laws in India (comes under concurrent list)- factories act 1948, plantation labour act, mines act minimum wages act, motor transport workers act,beedi and cigar workers act and many more..Issues related to some of the acts currently ( demand to end contract system by gurgaon automobile workers, demand of changes in minimum wages act. unrest in garment industry in bangaluru and associate it with the economic loss)
    —labour reforms and economic development are highly correlated as experienced by European countries in 90s. it is related to this simple way,more clear labour reforms+ more work at ease+ less strike+ more mandays+ more production + more employment+more income+ more demand and also more flexible labour laws keeping in view the interest of labours + more interested foreign investors +more capital more production and so on….another way….if every aspect of labour like women workers, child labour are taken care of in better way it will affect whole society…. from the colonial history we have experience what happens to a economy when its labour losts its traditional rights. economic aspect of colonial exploitation of labour….
    —- for a country like india where more than 70 % of population is in unorganised sector we need to protect our labour through reforms and need to shift this labour to organised sector like in manufacturing sector and also provide them skill training..

  • Sheetal

    It’s really good to have a core topic’s essay.
    Please try to continue this.
    If not,
    Then a wild thought. If possible, then do implement. Try to give two topics a weak. One of this kind, and one regular. I think, it won’t be a problem. for you.

  • El Nino

    It is said that change is the only constant. As we grow and develop we must adjust and recalibrate to the changing need of the time. Certain rules are laid down for prevailing conditions. In future when the condition changes, so must the rules. If we keep playing by the same rules we will be simply loosing. This is the reason why more than 100 amendments have been done in the constitution.

    India at time of independence took up dual of wealth creation and redistribution simultaneously. To protect the interest of workers we had certain labour laws for job security, minimum wages etc. For investment we had to compete with developed countries. We had the advantage of low cost of production derived from relative lower wages of workers as there was surplus labor. As a result industries started mushrooming. Over the period of time low cost advantage starts waning, due to rise in wage, and governments struggle to maintain balance between workers’ rights and industrial growth by legislation. After this the comparative advantage can only be maintained by providing rich pool of skilled labors and easing bottle necks in ease of doing business, like flexible labour laws. This is quite evident form developments in Chinese economy over last two decades.

    Labour reform is not just making it easier for employer to fire employees, as is a common misunderstanding. Labour reforms essentially mean taking steps in increasing production, productivity, and employment opportunities in the economy in such a manner that the interests of the workers are not compromised. It would include skill development, retraining, redeployment, updating knowledge, promotion of leadership quality etc. Labour reforms also include labour laws reforms. Labour laws are concerned with trade union rights of the workers, industrial relation job security and laws relating to wage, bonus and other incentive schemes.

    By not undertaking labour reforms we are hurting our economic development. The quantity of job is relatively decreasing. We have lost our dominance in textile market to Bangladesh. China is more preferred than India for FDI. Even in terms of quality the available employment opportunities are substandard. There is huge problem of skill and employability of labors in India.

    Presently an industry employing more than 100 workers have to take permission from labor commissioner of the respective region to fire any of them. Industry which employs more than 10 workers has to comply with the whole set of labor laws, pension laws, social security norms and labor safety regulations. Such rigid labour laws have meant that more than 90 per cent of Indian workers are hired informally. As most companies want to avoid these stringent rules, they hire contract labourers in place of full-time permanent labourers reducing decent employment, thereby causing insecurity, lowered standard of living and reduced access to good healthcare and education facilities deteriorating the quality of human resource in our country. To reap the benefits of demographic dividend, we must stop this deterioration.

    These laws have also led to zombie companies i.e. loss-making state-run firms that have stopped operations but continue to pay staff. One such typical example is that of the British India Corporation, a textile firm that stopped operating nine years ago but whose 1,800 workers continue to clock in each workday to be paid and promoted.

    Number of jobs available in the manufacturing sector has been limited. It provides employment to only 22% of the population. Rigidity of labor laws have been termed as one of the major reasons which has stifled development of large manufacturing industries in India. It has been termed as the “missing middle syndrome”. In the manufacturing sector there has been a bimodal distribution. There has been a concentration of the manufacturing units either as very large units or the micro and the small enterprises, whose annual turnover is below 20 crores. The predominant amount of employment today is actually generated in the micro, small and medium enterprises and the large enterprises are also comparatively lesser. So what has happened is that the amount of employment generated is concentrated in the unorganized sector of the economy. These small industrial houses actually never turn or never become big industrial houses. Or to that extent the growth of the small industrial houses never actually translates into them actually achieving economies of scale and becoming bigger and bigger over time. And why has this happened? This has happened because of the rigidity of labor laws. Workers are actually employed in smaller industries where number of workers per unit is often less than 10 or 20 units per industrial establishment. There are few industries like car manufacturing industries, automobile and electronic manufacturing industries which employ hundreds of workers. There is a reluctance on the part of small firms to expand, because they’ll be subject to labor laws if they employ more than 10 workers. They will come under the whole set of labor laws which apply to the organized sector and also at the same point of time if they employ more than 100 workers then they will they are not allowed to fire the workers if at all the demand for their goods decrease at their own will.

    To escape the application of labor laws, big industrial houses have actually started investing more in capital intensive technology. So rather than employing more workers they invest more in technology such as mechanization and robotics to keep the intake of worker to fewer than 100. So rather than using labor intensive they have gone for capital intensive methods of production so as to bypass the application of labor laws upon them. So that’s another reason why the quantity of employment today has been decreasing, or has not increased to that extent in India. Or the manufacturing sector continues to contribute only a small amount of employment as compared to the other sectors.

    Certain industries has seasonal highly elastic demand for labors like leather, textile etc. Given the fact that Indian labor laws do not allow hire and fire policy, a large number of these labor intensive industries have started or have actually been shifting bases to other countries. For that matter Bangladesh has actually overtaken and has become a serious competitor of India in the textile market because the labor laws there are much more flexible as compared to India.

    92% of the jobs in the manufacturing sector are generated in the unorganized sector. So the labor market in India is highly segmented. Workers who work in the organized sector are entitled to pensions, are entitled to paid leaves, are entitled to health benefits etc. and obviously also minimum wages but 92% of the workers do not get any of these benefits which the workers in the organized sector are entitled to. So the quality of employment generated in India is a much bigger concern and is related to labor reforms. There is informalization of labor within the organized sector itself. Within the 8% in organised sector a large number of jobs are being created in the contractual segment. Worker who is given the job on the basis of contract is not again entitled to pensions and healthcare benefits. Earlier within this 8%, 13% of the workers roughly used to be contractual employees. Now it has risen to 34%. So even within the organized sector informalization is happening with respect to the quality of employment.

    There have been labor laws which limit the employment of women after 8’o clock in the manufacturing houses. So rather than actually promoting the participation of women in the labor market this actually curbs the participation of women in the labor market. This definitely hurts our economic development.

    Laws which were made to protect and promote the work force has become the cause for their deteriorating condition. Hence there is no doubt that we need to reform our labour laws specially in the context of “Make in India” and “Skill India” campaign. Recently Rajasthan, Madhya Pradesh and Maharashtra have taken steps to reform their labour laws. Central government too has taken many initiatives under Shramaev Jayate program, Apprentice Protsahan Yojana etc. These are good start and constant effort should be made keeping all stakeholders in the loop. This should be be seen as fight between employee and the employer.

    Reforms in almost all spheres ranging from Banking, election, land, education, international relations etc have occurred. It will be only natural to carry out labour reforms as well.

  • missionmode

    Please do review!

    Two cousins Ram and Raheem met each other after many days. Ram
    informed his brother regrettably that because government had increased
    minimum wage payable to contract workers, he, a contract worker, was
    laid off. Raheem was sorry about this. However he asked Ram to come with
    him to the city. He told Ram of the guaranteed, timely wage he got as a
    permanent employee at a textile mill. Ram was also worried though, he
    said – ” our factory owner has been facing high cost due to our
    increased salaries. He might have to close the factory.”

    this is a hypothetical situation, Indian labor industry is a melting
    pot of various contradictions. During the highest growth phase in
    2001-2007, the share of informal sector in the economy was consistently
    above 90%. While this has gone down in recent years, the absolute figure
    is still quite high.

    India’s working class developed as a collective at the start of the
    independence movement in early 20th century. There might have been
    sporadic outbreaks against capital class before that as seen in the
    Indian Factory Act 1881 but the coming of Russian revolution and
    development of nationalist feelings against british factory owners led
    to development of the All India Trade Union in 1920. At that point
    Indian labor was being exploited to produce goods cheaply and sell at a
    higher price in India and abroad leading to economic development of
    Britain. Ever since then, workers have been an integral part of economic
    negotiations in the manufacturing sector.

    manufacturing growth story is as yet incomplete but it has allowed many
    farmers and sharecroppers from rural area to shift base and a lower
    middle class has thus emerged. While in the past this has resulted in a
    better quality of life for these workers, recent trend in economic
    growth is that it is jobless growth. Therefore, while economic
    development has a positive impact on labor requirements, the effect
    seems to be varied. Further, it has led to informationalistion. Spurred
    by profits,even owners in the formal sector prefer to employ contract

    On the other
    hand, labor reforms in themselves have affected economic development.
    India since independence has legislated on the subject extensively, from
    Indian Factories Act 1948, Industrial Disputes Act, Equal remuneration
    Act, Minimum Wages Act, Essential Services Act to the recently proposed
    legislation to raise minimum wage for contract labor to minimum wage of
    permanent labor – India has developed a rich jurispudence on the
    subject. All these have multiple objectives, ranging from gender parity,
    worker safety to ensuring resolution of disputes to prevent economic
    losses. Balancing the interest of the management and owner against the
    workers is the important determinant of success of these laws. While
    collective bargaining by unions has allowed workers to present their
    requirements in a coherent manner and increased their bargaining power,
    the recent advent of vote bank politics has fractured the unions which
    are now affiliated to the major national parties in the country. All
    this has politicised the reforms and no action goes without furore from
    one section or the other.

    contradictions just begin here. While safety standards allow workers a
    quality of life they have a right to, they also ensure minimum injury
    and thus low liability for the company. However it might also lead to
    higher costs. Need to open a creche for children of female employees has
    led to a decrease in employment of women in such factories in some
    areas while empowering some women as well. The recent proposal to fix a
    minimum wage might lead to shifting of factories from rural areas to
    urban areas as costs in urban areas are as it is higher. Further, while
    we have launched Make in India as a flagship scheme to develop our
    manufacturing sector and thus, economy our multiple labor laws and
    uncertainty on the policy front might dampen the success of the scheme.
    To prevent unintended, double edged consequences of labor reforms, we
    need change.

    To boost
    economic development our labor policy needs to be developed in tandem
    with both the management and workers. Employee stock options that give
    workers a stake in the success of the company will invest them in the
    venture and lead to mutual benefits. Efficiency wages, which are higher
    than minimum and increase the worker’s productivity are also an option
    for individual companies. Further, consultation with all parties before
    law making is important to understand their needs instead of allowing
    chaos once policy is announced. Further, labor representatives in
    management need to be appointed transparently and collectively by the
    workers. We also need to focus on creating good jobs which are wholesome
    and give not just economic sufficiency but allow a life of dignity.
    Enforcement structure of our existing laws is dependent on labor
    inspectors. In many cases they are bought by management – this needs to
    stop. Stricter implementation of laws, better monitoring and even
    stricter enforcement of penalties is the need of the hour. There is an
    increasing trend where textile factories are moving from urban areas to
    rural areas leading to massive spillover effects in the rural economy
    and for the factory as well. This will help revive the performance as
    well. Lastly, laborers are also consumers. An improvement in their lives
    will reflect in an improvement in the economy via increased consumption

    The ethical and economic benefits derived from a well structured labor policy should ideally outweigh its costs.

    need to fulfill the objectives mentioned in the directive principles of
    state policy in our constitution that call for increased worker
    participation in management, equal wage for equal work, quality life for
    workers etc. These are ideals that we need to cherish and fulfilling
    them will lead to economic development which in turn will improve lives
    of millions of worker in this country.

    • Deepak kumar

      any suggestion from my side can be misleading . But i found it smooth and attractive. Keep writing .

    • Eco-friendly

      your essay looks comprehensive. Covered the problems faced in a nice way. Conclusion is good too. Good suggestions also.

      In improvement part I would say- Intro can be better, positive developments of government should be highlighted along with criticism, impact on economy must be explicit.
      All the best

      • minaxi

        Hey Eco,, Plz ge some time to review my essay too.. 🙂

        • Eco-friendly

          aapka he padhne ja rha tha…..:P

    • minaxi

      Hello Mission Mode. 🙂
      I liked the flow and areas you have covered in your essays.. But Introduction can be improved. And, there mus be clarity of some concepts of labor laws which is affecting the economic development.
      Conclusion is innovative.. 🙂

      • missionmode

        Thanks for reviewing!
        Could you please give me an example of the second comment? have i mentioned something wrongly or i should mention a more direct linkage of labor laws with economic development? TIA 🙂

    • MJ

      Hi….. Your essay has been upto the mark. But schemes part seems missing in it.New government initiatives like ‘Labour portal’ and social security schemes can also be included.
      Review my essay if possible…..thanks !!

    • Majji

      MacKensy Global report – equal women participation – GDP growth goes by 60% by 2030;
      reforms on children; international front to attract more FDI etc could have been included.
      overall good.

      Please review mine as well.. i lately realized i missed many parts, still want to know you views. thanks.

  • BRK

    Please review @Kunal1989:disqus @InsightsOfficialReview:disqus @gomuki:disqus @disqus_ayushi13:disqus and others.I’ve taken a different approach. Please tell me if it’s all right.

    • InsightsOfficialReview


      I liked your presentation style. You can still improve your structure by separating your essay in further smaller paragraphs. Just write one point or max. 2 points in one paragraph.

      You wrote less on 2nd part of essay. You should have given equal weight to both aspects, i.e. labour reforms and their role in economic development. Still a very nice read.

      Marks – 70/125

      • BRK

        Thank you so much , sir/madam. I was afraid my interpretation was in excess of what was meant by labour in the question. Thankfully it wasn’t too off the mark.

  • Gaurav Chandra

    Dear Insight Team and Frnds plz review my essay..

  • vairagya

    Labor reforms in india and its role in eco dev.


    Much as we would like it to call it a demographic advantage, India has a serious challenge it faces today. It needs to ensure jobs for its large and rapidly expanding young population. As per President Mukherjee, India needs to create 115mn nonfarm jobs in next decade. Among several impediments to achieve this target, a major one that has been pointed out time and again is the rigid labor laws.

    Labor reforms are complex and tentative issue, and most of the current labor laws date back to 1950s and pre-independence era. Much has changed since then.


    Labor laws can be read as “labor rights”, which are a recent phenomenon in the post industrial revolution society. They have emerged in response to conditions prevailing in 19th and 20th century. The laissez faire based Capitalist economic system had turned out to be exploitative, and workers had no rights, no social security, no job security, no maternity benefits, no right to safe working conditions etc.

    At that time Karl Marx, through his critique of Capitalism, emphasized that capitalism as an economic system is inherently exploitative, as there is no end to man’s greed for profit. He suggested that workers through collective action should try and seize political power, and establish a socialist state, which will work for welfare of workers. To add to it, Capitalism was seen as the major cause of Colonialism and Imperialism, the 2 ills of this period. Hence ending capitalism was not just about ending exploitation of labor, but also about ensuring social justice by ending system of exploitation of man by man.

    To quote former PM, late J L Nehru, in his debate in Congress, “the challenge before people of the world to ending capitalism and establishing Socialism”.

    Thus when India got independence in 1947, its labor laws were based on this Marxian critique of capitalism. State’s intervention was thus felt necessary so as to protect workers’ interests.

    Where are we now?

    Rigid labor laws have like Part V-B of Industrial Disputes act, which mandates state’s permission before retrenchment of workers in firms employing 300 or more workers, are criticized time and again for hindering investment and hiring decision and promoting contract based labor.

    There are different rules for different categories of workers- contractual worker, dock worker, mine worker, plantation worker, etc. which creates a maze of rules.

    It takes anywhere between 2-3 years for firms to exit.

    As per economic survey 2015, over 90% of India’s labor force is in unorganized sector, with no coverage of labor laws. Moreover, since 2004 there is a steady shift of labor from agriculture based farm jobs, towards construction sector, i.e. shift from low wage farm jobs towards low skilled low productivity based construction sector jobs, which is an unhealthy trend. Moreover, there is increasing trend towards contractual labor, and use of capital intensive technologies. In fact the much talked about Make in India, that has bagged around $400bn investment, is expected to create around 6mn jobs only, and not what government aims to create (100mn jobs by 2020).

    At the same time, India is facing problem of “missing middle”, that is, majority of firms are either small and micro enterprises, or large enterprises. Less than 0.2% of industrial units are of middle size. Rigid labor laws are an important factor preventing firms from scaling up.

    Further, in case of Public Sector, there are around 70 firms with losses of nearly Rs 28000cr, and a major impediment to their closure is the labor unions and labor laws that make it difficult to exit.

    Are Rigid Labor Law to Blame?

    Indeed, the debate to deregulate labor laws is not confined to India alone. Such discussions have been going on around the world. The international institutions like IMF and World Bank have been championing the cause of flexibility in hiring labor.

    Economists have pointed out that India’s labor laws are not in sync with its current level of development. Being too rigid they are inhibiting it from taking benefit from its comparative advantage of low labor cost.

    But strict labor laws by themselves are not to be entirely blamed for several reasons. First, similar laws have existed in other part of the world like in France. What distinguishes them from India is ineffective judicial and administrative process characterized by inordinate delays, and bureaucratic corruption(Inspector Raj). In France such laws ensure that worker retrenchment is not arbitrary and due process is followed before decision is taken.

    Second, experience of Germany suggests mere deregulation of labor laws are not enough. Else easy hire-and-fire policy will only lead to reduced employment rates. Simultaneous attention to labor skilling is also needed for quick hiring of worker after retrenchment. As per various surveys, less than 2% of citizens entering work force every year receive any kind of formal vocational training. A survey in NASSCOM finds only 30% of college graduates as employable. Much needs to be done in this regard.

    Third, merely relaxing labor laws, without creating appropriate social security net, will make the process of growth exclusive, benefitting only a few sections. Such growth process is not sustainable in the long run. In case of West, ease down of labor laws was simultaneously backed up with expanding social security net. Whereas in India, government is cutting down subsidies, delaying implementation of food security act, and cutting down welfare expenditure, all in the name of Good Governance.

    Fourth, deregulation of labor laws would not suffice. We need to pay attention to other factors, including institutional reforms like faster clearance, e-governance , creation of infrastructure, tax reforms etc.

    So what should be done?

    While some laws do call for review and repeal, but labor laws should not be reduced to relaxing labor laws. We do need comprehensive review of labor policy as a whole. Steps like apprenticeship act and shram suvidha portal are steps in right direction. We need to expand Skill education; but mere 0.1% increase in annual budgetary expenditure of Education sector is disheartening. However, we can focus here on optimum utilization of resources.

    In Social Safety Net, the expenditure of state should increase on Primary Health Care, which hasn’t been the case in past few years.

    Institutional reforms like digital india, e-bizz, rationalizing tax laws, including GST, are all much needed reforms on whose success hinges our aim to increase quality employment.


    The goal of faster, sustainable and more inclusive growth is a product of several factors, an important one being Labor. India at this juncture needs to review its labor laws and accelerate reforms such that it facilitates formalization of labor, and greater skilling of labor.

    If 21st century is age of automation and big data, then quality of labor is going to play a crucial factor, and for this we need to have better labor laws aligned with needs of our times and vision of future.

    • nice one… mine if possibel……

  • prabhat

    Labour reforms and its role in economic development

    The importance of human labour could be understood from the fact that since the dawn of human civilization labour has played important role in creation of some of the great ancient civilizations – Mesopotamia(Iraq), Egypt, Indus valley civilization.Their urban settlements, flourishing trade and industry speaks the story of their richness made possible by exceptional labour.

    Even in the western civilizations which owes its development because of industrial revolution in form of increase in capital, economic growth has been actually made possible because of labour force which moved from agriculture to cities to work in these industries.ABRAHAM LINCOLN has rightly observed that-”labour is prior to , and independent of capital, capital is only fruit of labour and could never have existed if labour had not 1st existed.”

    Labour reforms are being talked of because in highly globalized world countries are competing for resource, whose movement depend upon favourable labour force market in the host country.In context of India it becomes more important to give thrust to MAKE IN INDIA and create millions of job to reap demographic dividend.

    In this essay we will talk about present state of labour market in India and its impact on economy.Next we will see why it has become important in present context and what needs to be done.


    Labour market in india is characterized as highly rigid compared to global standards.Industrialist argue that it do not give them flexibility to ‘hire and fire’.In era of globalisation such flexibility has become very important because it allows industries to respond to market demand by retrenching labour force or increasing the same.This could be explained through following example:suppose in current context of global slow down marked by weak demand it would be prudent for factory owner to retrench its labour to adjust to weak demand and remain competitive.

    Another problem is that it has created ‘inspector raj’ by requiring industries to comply to hundreds of provisions of industrial dispute act which are then manually inspected by labour inspector or commissioner.He could choose any factory at his will, their is no objective criteria for this..Further factories in india which employ more then 100 labour had to take permission of labour inspector before firing any of them.Moreover under the act owner not complying could be send into custody.This has created opportunity for corruption and collusion

    The impact of such rigid labour laws could be seen in the increasing number of industrial disputes in maruti manesar plant gurgaon and case of Greater noida where MD of foreign company was killed in dispute.The general trend is that such disputes between employer and employee are rising over issue of wages and contract labour.Flip side of such incident is that they deter foreign direct investment.One could easily relate this with the pathetic status of manufacturing industry in the country.This is because manufacturer find it better off by remaining small then increasing its size to come under cumbersome labour laws.This has affected creation of jobs in the country.

    Rigidities of Indian labour laws could possibly create social turmoil.Recent reports suggest that India is witnessing ‘jobless growth’which is not great sign for the 1 million labour entering labour market every month.estimates suggest India need to create 115 million job in next ten years to reap the demographic dividend.Further despite india breaking all records in FDI inflows in 2015-16 has received least in the manufacturing sector.These unhealthy sign is not good for the MAKE IN INDIA meant to push manufacturing.

    Need for labour reforms:

    Various reports have pointed that to make significant dent to poverty india needs to grow at 8-9% continuously for 2 decades. Here we need to understand the gravity of the situation from two angle.First the political strategy of offering free doles or right based approach in form of right to education, right to food has limitation.It need to be supplemented by gainful employment opportunity as economic empowerment is the ultimate life opportunity.Also state needs money to pay to offer these rights in absence of growth it would be hard to sustain such a large unemployed population.Second political parties have to stop demonizing the industrialist for vote bank politics, because it is important to push industrialization through suitable labour reforms to absorb the labour from agriculture.They need vision to realize only industries can reverse acute agrarian crisis faced in our villages by providing employment to youth.

    Recent protest created by jats in haryana and patidar community in gujrat is clear indication that these youth no longer find great opportunity in agriculture.And also its shows deep frustration of our youth who despite having degrees are not able to find employment.

    Further government which is pushing hard policies like SEZ, National investment manufacturing zone, Make in india will find hard to sell it to domestic and international investor without any substantial labour reforms.Manufacturing in India has become ‘Achilles heel’, improvement of this sector is crucial for India which is harbouring dream of becoming super power. India should learn from china whose high growth in last two decades were result of growth of manufacturing and reforms it brought in labour sector and its skilling.

    Present time is the most opportune time for India to tap the opportunity thrown up by slowdown in china and increasing wages.It is the most right time to make use of our comparative advantage in form of cheap labour to give flip to the manufacturing sector. By bringing labour reforms.

    Strategies needed

    Labour laws in India and else where is highly political issue which no party in power wants to touch it. In India present government has started the process of reforms but because of resistance from labour union, lack of political consensus no significant achievements have been made.Government instead of coercion needs to collaborate and engage all the stakeholders.It may first began by approaching the opposition parties to hear them out.secondly it may conduct tripartite dialogue between government, labour unions and industrialist to arrive at consensus of controversial issues relating to-Hire and fire,fixation of minimum wages,contract labour.
    IN mean time since consensus will take time to evolve given the democratic process government can go for the low hanging fruit -by bringing reforms in the apprenticeship act to provide vocational training to the youth.Skilling youth with right market oriented skills can go long way to improve the empolyability which is the major problem.This will require partnership between industry, polytechnic, ITIs and government.

    Labour reforms in India has become important to create employment and usher in economic development.But any reforms must not jeopardize the interest of our labour.
    It must ensure social security, right wages ,incentives, working condition to ensure their prosperity and security.Industrialist must also show little magnanimity because high profits, high growth and labour prosperity are mutually compatible.

    • prabhat

      plz guys give reviews.

  • paper1

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  • please review my essay friends and give suggestions if any……..

  • Majji

    Economic development of country needed for holistic growth of the nation, and for wellbeing of its citizen. One of the factor that play important role in economic development is Labor, one of the four ‘factors of production’. their welfare, wages, health is utmost priority of an organization in order to sustain it’s growth in highly competitive world. strikes for example, may hamper the production/profits of organization devastatingly, giving an edge to the competitor or loosing it’s share in market or at worst degrading it’s brand value. Labor reforms though done by government, they have to play balanced approach benefiting both labor and entrepreneur.

    Labor reforms are centered around welfare of labor, like good wages, adjustable working hours/shifts, holidays, social security benefits, and their health care and working environment. First felt during Industrial revolution around mid 18th century. where there is rampant negligence on health, working wages, and sanitation facilities in their locality of living. they lived in very unhygienic conditions and worked even for 15-20 hours a day. Children is no exception. they equally cursed by the capitalist until early 19th century when there were restrictions put on working hours and age limits.

    In modern world all most all countries have their own labor laws and most of the countries exempt children up to age 18 years from hazardous works. Recently Bolivia legalized the child labor for the first time. UN Comprehensive Convention on Child Rights recognizes the same for better childhood and for cognitive growth of their brain. One shouldn’t forget healthy child become an future asset to the nation, whereas unhealthy child is liability on nation economy.

    In developing countries like India, labor reforms applicable for organized sectors alone, which consists only 10% of total organizations. thus there are many left out of purview of rules in the form unorganized sector, which consists labor strength less than 40 as per Indian law, their wellness or wages or restrictions on working hours are left in the mercy hands of the his boss, which normally prone to harsh working conditions with out any job or social security benefits.

    Inclusion on women, on par equal basis with men, on wages, benefits with flexible working hours and even to work in night shifts is challenge on both government as well to organization for providing enough security and baby day care along with maternity leaves up to 6 months as per new regulations. Inclusion of women equally with men, encourage the nations economic growth, as per recent MacKensy Global Survey, India see 60% of the growth in GDP by 2030 along with empowerment of women in all spheres of life.

    Framing laws is one challenge, and implementation and strict adherence is another big task before government. In the race of improvising the profits, companies often going for ‘casualisation of labor’, where once can renew labor contract after certain period of time. This helps the organization in avoiding social security benefits to employee like PF, Health benefits.
    There is growing trend of this happening across the world. Another problem being increasing unorganized sectors. In India it holds 90% share.

    Labor is asset to company, his loyalty towards company depends on how the company treats him by way of salary as per work, and other perks. A loyal labor willing to work even few more hours if situation demands. Quality, Brand are they bi-products company gets by gaining the loyalty of worker. In Germany, CEO visits workers home, if work fall ill and couldn’t come to work. Thats the bond they both developed. In India Tata’s can be such example. Another benefit of loyalty is less/no strikes in company, which treated as major hindrance in growth of company. Recent Maruti manesar plant strikes, impacted the company so much so, it will take two more years for company to recover into profits.

    A progressive labor laws, benefits both company, and labor and mainly the economy overall, in the form of taxes, labor spending, company expansion its existing plant or open up new branches. Thus more spending attracts even more production, in it multiplier effect growth it creates more employment, more GDP. Economic growth with ‘spilling effect’ further contribute to allied sectors to grow which further created jobs. GDP growth also contributes to social welfare like Health, Education, Food security and Social security like old age pensions.

    Investment friendly labor laws attract more FDIs and Foreign companies. There is persistent complaint from foreign companies that Indian labor laws are not market friendly. for e.g. laying off a hundred employees require govt permissions, even dismissal due to redundancy require govt approval, which act as hindrance in organization competitiveness. Thus govt should keep all these while reforming laws. recent amendment to extend it to 300 is good step.

    Thus labor reforms plays an import role in country economic development along with other stakeholders labor himself and company. rational, domestically fit, market friendly laws are need of the hour. a well covered survey and research keeping future economic growth prospects and dynamics reforms should be done rather than short sighted. we should be able to create an environment where employer takes care of employee and employee takes care of company. A diamond merchant based on surat, who distributed cars as gift of diwali to all his employees need to be role model for all employers.

    • missionmode

      Hi! A very well structured essay. You have rightly highlighted the global aspect of labor reforms and variation. It sets a good benchmark. I also missed out on mentioning gender reform within labor.
      I thought your starting was a bit abrupt. But after that your essay flows well. I can only think of 1 thing you could have added – solutions. You have established how reforms are done, what is India’s status, their impact on economy and that there is a need for more – conclusive next step would be mentioning solutions.
      Also, factually, i think your point about casualisation might be wrong. A/c to eco survey, in India informal sector is decline as we now have option of contract labor. SO even though formalisation is increasing – not actually beneficial to labor.
      Great attempt!

      • Majji

        thank you for the feedback!
        i was under impression both casualisation and contract are synonyms. i tried on net for difference.. couldn’t clarify myself.. what is the difference?
        other points are duly noted. thank you.

        • missionmode

          I think casualisation means both contracting and informalisation. It will be better if you use just sub-contracting.

  • Alf

    please review my essay.. this is mymy first ever essay
    India is a country which at present has the maximum population in the working age group of 15 to 60 years that is demographic dividend this gives India and upper hand over other Nations and its parts to development label is said to constitute individuals who a contribution to the work force manually in a time bound Manan the helping in the production process in Indian scenario labels Mania part of 2 sectors agriculture with employees around 18% of labour and manufacturing with employees around 20 to 25% of the labour majority part of labour include women and children which could be attributed to the reason that they are easily available can be paid less or equal amount of work and don’t resist much of precious the labour sectors is a lot of issues like lack of skill development where in majority workforce are casual labour and don’t know any skills poverty where in majority labour is poor with poor background they find it hard to earn Amy purdy migrant particularly from rural areas they come to urban areas in search for employment to escape social issues from the rural areas and to have a better standard of living underpaid where is there not paid according to the amount of work most her after Mom these include children women and the elderly next is Bakery where is still some of the labours come under the money lenders trap and hands have to do bonded labour Omega majority of labour force comes from Pune states like Bihar u p MP Rajasthan certain Northeast state that is the Bheem Aur bete some of them aarivan migrants from other countries like Nepal Bangladesh and Myanmar to address these issues the Lord has been done since Independence to work improve working atmosphere firstly the Factories Act was passed in 1948 for sufficient relaxation time of the workers apart from other facilities then the ESI act to provide better Healthcare facilities to the work till further work with minimum wages Act was passed to a shower curtain minimum level of wages this has been amended recently to include rupees £1.80 per day not only this child labour act has been amended after the successful in terms of Nobel Laureate Mr Palace satyarthi this is certainly help bring Care in the mind of employees who employs children and also gives strict punishment to both of them next amendment to the labour laws Act 1 past will be Revolutionary for the sceptre enabling provisions on does this include changing the word Inspector to regulate the holding employer liable for any mishap and miss governing compulsory registration of people working under them among others even better provisions of women have been added like more maternity leave pay on leave practice at cetera he’s the forms of bound to produce positive result for the economy this will lead to more social and economic progress India will be able to repay demographic dividend effectively this will also promote globalisation in a positive and Palace tree example Indian labour working in other Nations particularly girls however this has to be combined with programs like Skill Development Mission which is the probable initiative from the government site India has a full fledged labour ministry which takes care of all the issues arising from this sector but must work more in this direction labour reforms in OLX improve the standard of living health and literacy status of not only the workers but the next coming generation India so that its performance with the Global standard for this India being a member of International Labour Organisation is a very positive thing at last we should respect or workforce who have given us the beautiful Indian feet today and political will shoot for the best interest

  • Alf

    please review my essay. this is my first time ever writing an essay
    India is the country which at present has the maximum number of population in the working age group that is 15 to 60 years also called demographic dividend. this gives India and upper hand over other nations in the pŕoduction process.

    labour is said to constitute individuals who contribute to the work force manually in a time bound Manner thus helping in the production process. in Indian scenario labour is mainly a part of 2 sectors -agriculture which employs around 18% of labour and manufacturing which employs around 20 to 25% of the labour .majority part of labour include women and children which could be attributed to the reason that they are easily available, can be paid less for equal amount of work and don’t resist much ofpressure.

    The labour sectors faces a lot of issues like lack of skill development where in majority workforce are casual labour and don’t know any skills .Secondly,poverty where in majority labour is poor with poor earning wages, they find it hard to earn a single meal. Thirdly,migrants particularly from rural areas come to urban areas in search for employment ,to escape social issues of the rural areas and to have a better standard of living.Fourthly, they are underpaid where in they are not paid according to the amount of work.Most harassed among tthese include children women and the elderly. Next is Begari wherein some of the labourers come under the money lenders trap and hence have to do bonded labour .

    Majority of labour force comes from states like Bihar ,u p ,MP Rajasthan(BIMARU), certain Northeast states .some of them are even migrants from other countries like Nepal ,Bangladesh and Myanmar .

    To address these issues ,a comprehensive approach is needed. A lot has been done since Independence to work towards improving the working atmosphere .firstly the Factories Act was passed in 1948 which provided for sufficient relaxation time of the workers apart from other facilities .then the ESI act to provide better Healthcare facilities to the workers was passed.still further , minimum wages Act was passed to assure certain minimum level of wages ,this has been amended recently to include rupees 180per day as minimum survival wage.not only this ,child labour act has been amended after the successful attemptsvof Nobel Laureate Mr Kailash Satyarthi. this is certainly helping bring fear in the mind of employerswho employ children and also gives strict punishment to both of them-employers as wellbas parents. next is the amendment to the labour laws Act will be Revolutionary for the sector in enabling provisions including changing the word Inspector to regulator,holding employer liable for any mishap and miss governance,timely wage payment,compulsory registration of people working under them among others .even better provisions of women have been added like more maternity leave ,pay on leave ,creches etc.

    All these reforms are bound to produce positive result for the economy. this will lead to more social and economic progress. India will be able to reap its demographic dividend effectively. this will also promote globalisation in a positive and balanced manner. for example,Indian labour working in other Nations ,particularly gulf region,will benefit indirectly.
    however this has to be combined with programs like Skill Development Mission which is the applaudable initiative from the government side. India has a full fledged labour ministry which takes care of all the issues arising from this sector ,but must work more in this direction.
    labour reforms will improve the standard of living ,health and literacy status of not only the workers but their future generations also.India should match its performance with the Global standards.for this India being a member of International Labour Organisation is a very positive thing .
    finally we should respect our workforce who have given us the beautiful India we see today .political will is also needed for serving the interests of this sector in a better way.