Labour Reforms Aim to Elevate India Among Top 10 Nations in Ease of Doing Business

By siliconindia  |  Wednesday, 23 September 2020, 11:07:18 AM IST

Labour Reforms Aim to Elevate India Among Top 10 Nations in Ease of Doing Business
The government is striving to escalate India to among the top 10 countries in the World Bank's ease of doing business rankings with the comprehensive labor reforms. This reform is likely to be completed after obtaining three draft approval from the parliament. Under the labor reforms, the Centre plans to subsume nearly 44 central laws into four broad codes on wages; industrial relations; occupational safety, health and working conditions (OSH), and social security. 
"The ultimate goal of the government is to see India figure in top 10 nations in ease of doing business index of World Bank with completion of long-pending labor reforms," says a senior labour ministry official.
However, the Wage Code Bill 2019 has been passed by Parliament last year and the other three codes were introduced last week and are awaiting to be passed in the lower house. According to the Doing Business 2020 report, India has raised 14 places and settled at 63rd position in the ease of doing business rankings. It is also witnessed that the country has improved its rank by 79 positions in the last five years since 2014. 
The official states, "Labour laws would act as a catalyst after the reform process is completed with the passage of remaining three codes in Parliament during the ongoing session. They would be helpful in attracting investments and generate employment in the country," 
He further adds, "At present, it is cumbersome to be an entrepreneur due to this vicious web of labor laws which make compliance practically difficult. It is easy to seek employment rather than doing their own business and becoming a job creator." 
The three codes for one labor return, one license, and one registration is expected to ease compliance. Currently, the entrepreneur has to maintain a minimum of eight registrations and four licenses to run a business under the existing labor laws. Further, they are also expected to file eight labor returns that include the EPFO, ESIC, and Chief Labor Commissioner. 
Alongside this, the government is also considering to digitize the entire process of labor law compliance that is expected to ease the business process. 
 

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