Economic Liberalization and Labour Law Reform in India

  • Hitoshi Ota
Part of the IDE-JETRO Series book series (IDE)


This chapter deals with the labour reforms in India, mainly focusing on labour legislation, the reform of which has been much discussed during the past decade. It is well known that, in the post-independence period, the policymakers in India attempted for a long time to build a nation characterized by a ‘socialistic pattern of society’, where the emphasis was placed on economic and social equality as well as social justice rather than on economic efficiency. With the resource constraints and the inward-looking economic administration, market competition was curbed and the efficiency that competition could have engendered was compromised. However, the situation began changing gradually in the 1980s when the government initiated partial economic liberalization, and then dramatically after the announcement of the New Economic Policy (NEP) in 1991. Especially due to the NEP and the subsequent economic and industrial policies in the 1990s, the structural adjustments of the Indian economy have proceeded, and ever since, market competition has been intensified by the gradual but substantial deregulations and the abolition of the restrictions on entry to the market. Nonetheless, one of the areas where the reforms by government initiatives did not moved forward greatly was that of labour.


Trade Union Industrial Relation International Labour Organization Contract Labour Labour Legislation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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  • Hitoshi Ota

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