Labour code reform to drive inclusivity, productivity across industries: Experts

CII Northern Region welcomed the recent implementation of India’s four consolidated labour codes — a major structural reform that streamlines 29 laws into a simpler, more contemporaneous framework.

Though many provisions existed earlier, the restructured codes introduce several new and ‘progressive’ elements, categorised across four broad areas: simplified compliance, enhanced worker welfare, greater inclusivity, and strengthened workplace safety. Numerous industry experts hold the opinion that together, these reforms were poised to positively impact India’s economy and accelerate the nation’s journey towards becoming a developed nation by 2047.

Anjali Singh, chairperson, CII Northern Region and Executive Chairperson, ANAND Group India, stated that the new labour codes marked a pivotal shift in India’s world of work.

“These reforms are not just a consolidation exercise — they prioritise better working conditions, improved health and safety standards, and a more transparent industrial environment. By simplifying compliance and bringing more enterprises into the formal economy, the codes strengthen both the workforce well-being and India’s economic competitiveness.”

A long-standing challenge for Indian industry has been the complexity of labour regulations, often seen as a bottleneck to manufacturing growth. The unified codes, with clearer definitions and uniform applicability, are expected to remove ambiguity and improve ease of doing business.

Puneet Kaura, Deputy Chairperson, CII Northern Region and Managing Director & CEO, Samtel Avionics, highlighted the relevance of these reforms in the current landscape. “The simplification of labour laws sends a powerful signal to global investors that India is committed to a stable, transparent, and business-friendly environment. Streamlined processes will support manufacturing expansion, encourage long-term planning, and help position India as a preferred investment destination,” Kaura said.

A significant portion of India’s economy still operates in the informal sector. The new codes, with provisions that encourage formalisation and clearer regulatory norms, are expected to benefit MSMEs and smaller enterprises. Sushil Baveja, Chairman, Regional Committee on HR & IR, CII Northern Region and CHRO, Jindal Stainless Ltd, emphasised that inclusivity was embedded in the reforms.

“Importantly, the codes address inclusivity — especially regarding women’s participation in the workforce — and emphasise safer, more flexible working environments. The new codes also highlight worker-centric reforms such as updated working-hour norms, stronger safety requirements, and expanded social security coverage, including for gig, platform, and unorganised-sector workers. By promoting healthier workplaces and more secure employment structures, the codes support long-term productivity and workforce empowerment,” Baveja said.