India’s momentous stride towards economic modernization

In a historic decision, in November 2025, the Government of India announced the implementation of the four Labour Codes, namely on Wages, Industrial Relations, Social Security and Occupational Safety, Health and Working Conditions, by rationalising 29 existing, mostly pre-1950s labour laws. The implementation of the four Labour Codes will help transition the Indian economy beyond colonial-era structures and align with modern global trends. The benefits of these labour reforms are expected to be compounded by the dramatic expansion in social-security coverage, which rose from about 19% of the workforce in 2015 to more than 64% in 2025. It may be recalled that in June this year, the International Labour Organization’s (ILO) ILOSTAT database observed that India ranks second in the world in providing social protection coverage to 940 million citizens and further that the 45 percent increase marked the fastest expansion in social protection coverage worldwide.

The implementation of the four Labour Codes marks the next major step in this trajectory, further widening the social security net and embedding the portability of benefits across states and sectors. With expanded social security, stronger protections, and nationwide portability of entitlements, the Codes place workers, especially women, youth, unorganised, gig, and migrant workers, firmly at the centre of labour governance. By reducing compliance burden and enabling flexible, modern work arrangements, the Codes boost employment, skilling, and industry growth.

In particular, it is important to highlight that the use of digital platforms and Direct Benefit Transfers has been crucial in our journey towards economic modernization, and this continues to guide the application of the Labour Codes. Further, the National OSH Board will set harmonised safety and health standards across sectors. These and many other innovative features point towards a determined push in the sphere of labour governance in line with our self-reliant approach, also called Atmanirbharta.

The Codes lay the foundation for a protected, future-ready workforce and resilient industries. A simplified, efficient framework that draws upon the use of technology in the administration of labour laws through digital registration, licensing, and inspections for improved efficiency and transparency is significant. Equally significant are the simplification of procedures, the fostering of a business-friendly environment as well as enforcement through online, risk-based inspection mechanisms and objective implementation processes. It is therefore expected that the four Labour Codes will also have a positive effect in improving the ease of doing business within India.