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Gr B ESI > Industrial and Labour Policy changes > Flashcards

Industrial and Labour Policy changes Flashcards

1
Q

Key Features of
Industrial Policy Resolution of 1948 (IPR 1948)

A

Mixed Economy: A blend of public (government-owned) and private enterprises.
State Control: Government held major roles in strategic and key industries.
Industrial Classification: Industries divided into four categories:
Exclusive Public Sector: Arms, ammunition, atomic energy, railways
Public and Private Sector: Coal, iron & steel, aircraft manufacturing, etc.
Regulated Private Sector: Heavy chemicals, sugar, etc
Open to Private Enterprise: All remaining industries

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2
Q

Objectives of
Industrial Policy Resolution of 1948 (IPR 1948)

A

Promote rapid industrialization
Develop heavy and basic industries
Reduce reliance on foreign imports
Ensure equitable distribution of wealth
Improve standards of living

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3
Q

Purpose of Industrial Development and Regulation Act of 1951 (IDRA 1951)

A

Implement the vision of the Industrial Policy Resolutions (IPR)
Ensure industries developed in line with national priorities
Promote efficient use of resources
Encourage technology adoption and innovation
Protect small-scale industries

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4
Q

Key Provisions of Industrial Development and Regulation Act of 1951 (IDRA 1951)

A

Industrial Licensing: Required for new large-scale undertakings or substantial expansion in ‘scheduled industries’. Ensured planned growth.
Price and Distribution Controls: Government could regulate prices and distribution of essential goods, preventing profiteering.
Power to Direct Industry: Government could issue directions to industries to ensure production of critical items or take over operations where necessary.
Central Advisory Council: A body of experts and representatives to advise the government on industrial policy matters.

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5
Q

Significance of IDRA 1951

A

Played a crucial role in shaping India’s early industrialization and preventing concentration of economic power.
Led to the creation of a strong public sector in strategic areas.
IDRA underwent several amendments over the years, reflecting changing economic policies and focus on liberalization.

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6
Q

Industrial Policy Resolution of 1956 (IPR 1956)

A

Context: Building on IPR 1948, India’s adoption of a socialistic pattern of society.
Emphasis: Greater role for the public sector and development of heavy industries.

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7
Q

Revised Industrial Classification (IPR 1956)

A

Schedule A: Exclusive responsibility of the State. Expanded from IPR 1948 to include 17 industries like heavy machinery, minerals, and more.
Schedule B: Progressively state-owned, but private sector could start new units. Included key industries like fertilizers, machine tools, and more.
Schedule C: Remaining industries left primarily to the private sector, subject to government regulation.

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8
Q

Objectives of IPR 1956

A

Main Aims:
Reduce income and wealth inequalities
Expand employment opportunities
Prevent the concentration of economic power

Additional Focus:
Developing heavy and capital goods industries for self-reliance
Expanding public sector
Promoting small-scale and cottage industries
Reducing regional disparities in development

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9
Q

Significance of IPR 1956

A

Marked a definitive shift towards the socialistic model
Laid the foundation for large-scale public sector investment in key industries
Shaped India’s industrial landscape for decades

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10
Q

Monopolies Commission (India)
Objectives

A

Established: 1960 under the Monopolies and Restrictive Trade Practices Act (MRTP Act)
Objective:
Prevent concentration of economic power
Promote fair competition
Protect consumer interests

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11
Q

Monopolies Commission (India)
functions

A

Investigate and inquire into mergers, acquisitions, and monopolistic practices
Recommend corrective measures to the government
Issue directions to companies to prevent unfair practices
Advise the government on matters related to competition and monopolies

Replaced By: Competition Commission of India (CCI) in 2002
Reason for Replacement: MRTP Act considered outdated, CCI has broader powers to address anti-competitive practices.

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12
Q

Industrial Policy Statement of 1973

A

Context
Increasing concern over concentration of economic power.
Focus on social justice and reducing regional imbalances.

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13
Q

Key Provisions of Industrial Policy Statement of 1973

A

Restrictions on Large Industrial Houses: MRTP (Monopolies and Restrictive Trade Practices) Act applied to companies exceeding a certain asset threshold for expansion or setting up new businesses. 20 crore
Foreign Companies: Foreign Exchange Regulation Act (FERA) imposed stricter regulations - foreign ownership could not exceed 40% in most sectors.
Joint Sector: A new concept designed to encourage partnerships between public sector companies and private entities.
Small-Scale Sector Promotion: Reservation of specific products for production exclusively by small-scale industries.

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14
Q

Objectives of Industrial Policy Statement of 1973

A

Curb concentration of economic power: Prevent large businesses from dominating markets.
Self-reliance: Reduce dependence on foreign technology and imports.
Balanced regional development: Encourage industrialization in less-developed areas.
Role of the public sector: Continued emphasis on the public sector in core industries.

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15
Q

Industrial Policy Statement of 1977

A

Context: Issued by the Janata Party government, emphasized a shift away from heavy industrialization
Key Focus: Promotion of small-scale, cottage industries and rural development

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16
Q

Small-Scale Industries Thrust of Industrial Policy Statement of 1977

A

“Tiny” Sector: Introduced as a new category for very small industries with investments below a certain level.

Reservation of Products: Expanded list of products exclusively reserved for small-scale industries.

District Industries Centers (DICs): Established as single-window agencies to provide support and services to small industries at the district level.

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17
Q

Restrictions on Large-Scale Industries of Industrial Policy Statement of 1977

A

Focus on Rural Needs: Large industries were discouraged from producing goods that could be made by small-scale units.

Location Restrictions: New large-scale industries could be set up away from urban areas to reduce regional imbalances.

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18
Q

Other Key features of Industrial Policy Statement of 1977

A

Labor-Intensive Technology: Emphasis on using technology that generated more employment opportunities.

Worker Participation: Encouragement of worker participation in the management of industries.

Focus on Consumer Goods: Increased attention to the production of essential consumer goods.

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19
Q

Industrial Policy of 1980

A

Emphasis on liberalization, efficiency, and modernization after a period of relatively slow industrial growth.

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20
Q

Key Features of the 1980 Industrial Policy

A

Easing Licensing Restrictions: Automatic expansion of capacity allowed for several industries to encourage production.
Delicensing: A list of industries was delicensed, making it easier to set up new businesses.
Raising Investment Limits: Increased investment ceiling for small and medium enterprises for larger projects.
Promotion of Exports: Focus on making Indian industries more competitive internationally.
Technological Upgradation: Emphasized the importance of modernizing technology.

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21
Q

Objectives of the Industrial Policy 1980

A

Increased Industrial Productivity: Aim to boost production and efficiency.
Optimal Resource Utilization: Focus on efficient and economic use of resources.
Higher Employment Generation: Creation of job opportunities.
Removal of Regional Disparities: Encouragement of industrial development in backward areas.
Consumer Protection: Priority to providing goods at fair prices.

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22
Q

Significance of the Industrial Policy 1980

A

Initial Steps Towards Liberalization: The 1980 policy started the process of easing regulations and marked a shift from the inward-looking policies of the past.
Controversial: Critics argued it favoured large businesses and ignored employment goals

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23
Q

Industrial Policy Resolutions (IPR) of 1985 & 1986

A

Context: Prime Minister Rajiv Gandhi’s government initiated partial economic reforms within the existing framework.
Emphasis: Delicensing, deregulation, and a push towards technology modernization.

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24
Q

Key Features of IPR 1985 & IPR 1986

A

Delicensing: Several industries were delicensed, simplifying new business setup and expansion.
Broadbanding: Firms allowed to diversify production within broad product categories for flexibility.
Re-endorsement of Capacity: Automatic expansion of licensed capacity permitted under certain conditions, increasing production potential.
MRTP Asset Limits Revised: Increased asset threshold for companies falling under the Monopolies and Restrictive Trade Practices (MRTP) Act regulations, easing restrictions on large firms.

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25
Q

Additional Features of IPR 1985 & 1986

A

Minimum Economic Scale: Emphasized achieving minimum efficient production levels for competitiveness.
Import Liberalization: Easing access to imported technology and capital goods for modernization.
Infrastructure Development: Focus on improving infrastructure to support industrial growth.

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26
Q

Objectives of IPR 1985 & 1986

A

Boosting Productivity and Efficiency: Increase output and competitiveness of Indian industries.
Technological Modernization: Adopting newer technologies for improved production processes.
Generating Employment: Create more jobs through industrial growth.
Promoting Exports: Encouraging Indian industries to target the global market.

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27
Q

Significance of IPR 1985 & 1986

A

Stepping Stone to Liberalization: While not full-scale liberalization, these IPRs represented a shift towards a more open and market-oriented economy.

Paved the Way for 1991 Reforms: The 1985 & 1986 resolutions laid the groundwork for the more radical reforms undertaken in 1991.

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28
Q

Industrial Policy of 1991

A

Context: Drastic change brought on by a severe economic crisis, signaling a shift towards liberalization, privatization, and globalization (LPG reforms).
Key Architects: Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.

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29
Q

Major Changes Introduced in 1991

A

Dismantling the License Raj: Drastic reduction in industrial licensing requirements. Industries needed licenses only in a few sectors concerned with security, strategy, environmental, or social reasons.
Reducing Role of Public Sector: Disinvestment began, and many industries previously reserved for the public sector were opened to private investment.
FDI Encouragement: Increase in foreign investment limits (up to 51% in priority sectors), streamlining investment approval processes.

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30
Q

Additional Reforms in the 1991 Policy

A

Easing MRTP Restrictions: Loosening regulations for large corporations under the Monopolies and Restrictive Trade Practices Act.
Industrial Location Policy Liberalized: Companies gained more freedom in choosing where to set up industrial units.
Deregulation of the Financial Sector: Accompanied the industrial reforms, with steps towards making capital markets more robust.

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31
Q

Objectives of the 1991 Industrial Policy

A

Reviving Growth: Stimulate industrial growth and address the balance of payments crisis.
Efficiency and Competitiveness: Make Indian industry more efficient and internationally competitive.
Attract Foreign Capital and Technology: Boost technological upgradation and access to global markets.
Generate Employment: Address unemployment through renewed industrial growth.

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32
Q

Significance of the Industrial Policy of 1991

A

Watershed Moment: A significant departure from the past, ending decades of inward-looking policies.
Foundation of Modern Indian Economy: Paved the way for sustained economic growth and India’s integration into the global economy.
Controversies: The policy has critics who argue that it favored large businesses and increased socioeconomic inequality.

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33
Q

Special Economic Zones (SEZs)

A

Geographic regions within India that have economic laws more liberal than the country’s domestic laws.

Designed to attract foreign and domestic businesses by offering:
Duty-free imports and exports
Tax benefits
Simplified regulations
World-class infrastructure

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34
Q

Special Economic Zones (SEZs) in India - Established

A

Under the Special Economic Zones Act of 2005.

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35
Q

Types of SEZs in India

A

Multi-Product SEZs: Can house various industries within the zone.

Sector-Specific SEZs: Focused on a specific industry, like gems & jewelry, IT, biotechnology, etc.

Free Trade Warehousing Zones (FTWZ): Primarily for trading and warehousing imported goods.

36
Q

Key Features of SEZs

A

Single Window Clearance: Streamlined approval process for setting up businesses within the zone.
Duty Exemptions: Exemption or reduction on customs duties, excise duties, and corporate taxes.
Liberal Labor Laws: Simplified labor regulations compared to the rest of the country.
World-Class Infrastructure: Developed infrastructure within the zone, including roads, power, water, and waste disposal facilities.

37
Q

Objectives of SEZs

A

Promote Exports: Increase India’s exports and generate foreign exchange.
Attract Foreign Direct Investment (FDI): Create an attractive environment for foreign investors.
Employment Generation: Create new jobs through increased industrial activity.
Technology Transfer: Facilitate transfer of technology from foreign companies to India.

38
Q

Criticisms of SEZs

A

Concerns about Job Displacement: Arguments that jobs might move from non-SEZ areas to SEZs.
Environmental Impact: Potential environmental consequences due to industrial activity.
Equity Issues: Fears of creating enclaves for large businesses without benefits for surrounding areas.
Land Acquisition Issues: The process of acquiring land for SEZs can sometimes lead to social conflicts and displacement of local communities.

39
Q

Future of SEZs in India

A

Government Initiatives: Focus on attracting investment to existing SEZs and developing social infrastructure around them.
Policy Adjustments: Potential revisions to address concerns about job displacement, environmental protection, and ensuring benefits reach surrounding areas.

40
Q

Benefits of SEZs in India: Exports

A

SEZs have shown a significant increase in exports. According to the Ministry of Commerce & Industry, SEZs contributed:
Around USD 280 billion in exports from 2005-06 to 2022-23 (figures for individual years may not be readily available).

41
Q

Benefits of SEZs in India: FDI

A

SEZs have attracted significant Foreign Direct Investment (FDI). Again, data from the Ministry of Commerce & Industry shows:
Over USD 370 billion FDI inflows into SEZs from 2000-01 to 2022-23 (specific year-wise data might require further research).

42
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43
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44
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45
Q

National Manufacturing Policy (NMP) 2011

A

Launched by: Government of India to boost the manufacturing sector’s contribution to the GDP.
Vision: To create a globally competitive manufacturing sector in India.

46
Q

Key Objectives of NMP 2011

A

Increase the manufacturing sector’s share of GDP from 16% to 25% by 2022 (target not fully achieved. The manufacturing sector’s share of GDP in India in 2022 was estimated to be around 13%).

Generate 100 million new jobs in the manufacturing sector (target not fully achieved. Estimates suggest the policy created around 17 million new manufacturing jobs by 2022).

Enhance technological depth in the sector.

Make India a global manufacturing hub

47
Q

Reasons for reverse trend in employment and GDP contribution under NMP 2011

A

Global economic slowdowns: The global economy experienced slowdowns during the period after 2011, which impacted demand for Indian manufactured goods.

Competition from other countries: Countries like China and Vietnam offered strong competition with lower costs and established manufacturing ecosystems.

Infrastructure bottlenecks: Inadequate infrastructure, such as power supply, transportation networks, and logistics, hampered the growth of the manufacturing sector.

Skill gaps: The shortage of skilled workers in certain sectors limited the ability of industries to scale up.

Difficulties in ease of doing business: Despite efforts, complexities in regulations and procedures continued to pose challenges for businesses.

48
Q

Key Strategies of NMP 2011

A

Mission Mode Approach: Focused interventions in specific high-growth potential sectors like automobiles, textiles, pharmaceuticals, etc.

Skill Development Initiatives: Improving skills of the workforce to meet industry demands.

Infrastructure Development: Building robust infrastructure to support manufacturing activities.

Ease of Doing Business: Simplifying regulations and procedures for setting up and operating businesses.

Credit Availability: Promoting access to finance for manufacturing enterprises.

49
Q

Achievements of NMP 2011 (to an extent)

A

Growth in the manufacturing sector (though not reaching the targeted 25% share of GDP).

Increased focus on skill development programs, as evidenced by initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which has trained over 1 crore (10 million) individuals since its launch in 2015.

Initiatives towards improving ease of doing business, as measured by India’s ranking in the World Bank’s Doing Business Report. India’s ranking improved from 135th in 2011 to 63rd in 2019 (The latest Doing Business Report was discontinued by the World Bank in 2021)..

50
Q

Challenges of NMP 2011

A

Slow Implementation, such as delays in rolling out specific programs and initiatives. For instance, the setting up of National Investment Zones (NIZs), envisioned as industrial townships with world-class infrastructure, faced hurdles in land acquisition and clearances, leading to delays in their development.

Infrastructure Bottlenecks: Inadequate infrastructure continues to be a hurdle.

Global Economic Slowdown: External factors impacting growth.

Land Acquisition Issues: Challenges in acquiring land for industrial purposes.

51
Q

What are the Recent Government Initiatives for Growth of the Industrial Sector in India?

A

Production-Linked Incentive (PLI)- To scale up domestic manufacturing capability.
PM Gati Shakti- National Master Plan - Multimodal connectivity infrastructure project.
Bharatmala Project- To Improve connectivity in North East India
Start-up India- To catalyze Startup culture in India
Make in India 2.0 - To transform India into a global design and manufacturing hub.
Atmanirbhar Bharat Campaign - To cut down import dependence.

52
Q

Make in India (2014)

A

Launched by: Government of India as a national initiative to promote and develop the manufacturing sector.

Objective: To transform India into a global manufacturing hub.

53
Q

Key Focus Areas of Make in India

A

25 Sectors: Initial focus on 25 key sectors with high growth potential, like automobiles, capital goods, pharmaceuticals, textiles, etc. New sectors have since been added.

Improvement in Ease of Doing Business: Simplifying regulations and procedures, streamlining approvals, and reducing bureaucratic hurdles for businesses.

Foreign Direct Investment (FDI) Attraction: Creating a more attractive environment for foreign companies to invest and set up manufacturing units in India.

Infrastructure Development: Building robust infrastructure including power, transportation networks, and industrial parks to support manufacturing activities.

Skill Development Initiatives: Focusing on training and skill development to create a workforce with the skills needed by the manufacturing sector.

54
Q

Strategies for Make in India

Improving Investment Climate

A

Streamlining investment approval processes.

Setting up Special Economic Zones (SEZs) and Industrial Corridors.

Providing tax benefits and incentives for manufacturing companies.

55
Q

Strategies for Make in India

FDI Liberalization

A

Increasing FDI limits in specific sectors.

Simplifying procedures for foreign companies to invest.

56
Q

Strategies for Make in India

Focus on Innovation

A

Encouraging research and development (R&D) activities.

Promoting technology transfer and adoption.

57
Q

Achievements of Make in India

A

Increased focus on manufacturing, with growth in the sector (though not a dramatic or sustained rise as envisioned).

Improvement in India’s ranking in the World Bank’s Doing Business Report (ranking improved from 135th in 2011 to 63rd in 2019 - The latest Doing Business Report was discontinued by the World Bank in 2021).

Rise in FDI inflows, indicating increased investor interest in Indian manufacturing.

Development of industrial corridors and initiatives like “Smart Cities” to improve infrastructure.

58
Q

Challenges of Make in India

A

Slow Implementation: Delays in implementing reforms and initiatives.
Infrastructure Bottlenecks: Continuing issues with power supply, transportation networks, and logistics systems.
Skill Gaps: The need for a skilled workforce remains a challenge for certain industries.
Land Acquisition Issues: Difficulties in acquiring land for industrial projects.
Global Economic Factors: External factors impacting demand and competition.

59
Q

FDI in 2014

A

FDI Inflow: Around $45.15 billion (estimates vary depending on the source)

Ranking: Not in the top 100 on the Ease of Doing Business list

60
Q

FDI 2023 (as of September):

A

FDI Inflow: $70.97 billion (provisional figure)
Ranking: 63rd on the World Bank’s Doing Business list (discontinued in 2021)

FDI inflows have grown by over 50% from 2014 to 2023 (provisional figures).

61
Q

Production-Linked Incentive (PLI) Scheme

A

Introduced by the Government of India in 2020.
Aims to boost domestic manufacturing capabilities and enhance export competitiveness.

62
Q

PLI - How it Works

A
  • Government Offers Incentives
    The government provides financial incentives based on a company’s incremental production of certain goods.
    Incentives can be in the form of cash rewards or duty benefits
  • Companies Need to Meet Targets
    Companies need to achieve specific production or sales targets over a designated period to qualify for the incentives.
63
Q

Target Sectors of PLI

A

The scheme initially targeted 13 sectors,
* High-value electronics
* Automobiles & Auto Components
* Pharmaceuticals
* Textiles
* Advanced Chemistry Cell (ACC) Battery
* Food Processing
* Large Scale Electronics Manufacturing
* Medical Devices
* Telecom & Networking Products
* Drones
* Solar PV Modules
* Specialty Steel

64
Q

PLI Scheme Expansion

A

Over time, the PLI scheme has been expanded to include additional sectors, such as:
White Goods (ACs, refrigerators, etc.)

65
Q

Objectives of the PLI Scheme:

A
  • Increased Production
  • Reduced Reliance on Imports
  • Export Growth
  • Job Creation
  • Technological Upgradation
66
Q

Benefits of the PLI Scheme (Potential):

A
  • Attracting Investments
  • Technological Advancement
  • Stronger Value Chains
67
Q

Challenges of the PLI Scheme:

A
  • Meeting Production Targets
  • Level Playing Field Concerns
  • Long-Term Sustainability
68
Q

Startup India

A
  • program launched by the Indian government in 2016 to foster innovation and entrepreneurship in the country.
  • It aims to create a strong ecosystem that supports startups throughout their growth stages.
69
Q

Goals of Startup India

A

Building a Strong Startup Ecosystem: Startup India works to establish a supportive infrastructure for startups to thrive. This includes simplifying regulations, providing funding avenues, and connecting them with mentors and collaborators.

Encouraging Innovation and Design: The program emphasizes innovation and design as driving forces for startups. It aims to empower them to develop original solutions and establish a culture of creativity.

Boosting Economic Growth and Employment: By nurturing startups, Startup India aspires to contribute to India’s economic progress. By creating new businesses and industries, it aims to generate large-scale employment opportunities.

70
Q

key features of Startup India

A

Simplified Regulations: The program streamlines compliance procedures for startups. This allows them to focus on core business activities instead of getting bogged down by administrative burdens.

Funding Support: Startup India provides access to various financial resources, including bank loans and tax benefits. This helps startups secure capital for growth and development.

Industry-Academia Partnerships: The initiative encourages collaboration between academic institutions and startups. This fosters knowledge sharing and the development of cutting-edge solutions.

Incubation and Support: Startup India facilitates incubation centers that provide startups with mentorship, workspace, and other essential resources.

Fast-Track Patent Processing: The program offers expedited processing of patent applications for startups, protecting their intellectual property rights.

71
Q

Outcomes of startup India

A

As of May 2023, India has over 99,000 government-recognized startups, with a growing number based in smaller cities beyond major metros.

The program has also contributed to the emergence of over 100 unicorns

72
Q

Atmanirbhar Bharat Abhiyan

A

Self-Reliant India Campaign) is a major economic initiative launched by the Indian government in 2020 in the wake of the COVID-19 pandemic

73
Q

Key Goals of Atmanirbhar Bharat Abhiyan

A

Economic Revival: The campaign aims to revitalize the Indian economy severely impacted by the COVID-19 crisis.
Self-Reliance: Its central theme is promoting self-reliance across various sectors of the Indian economy. This doesn’t mean isolationism, but creating strong domestic manufacturing and supply chains.
Boosting Domestic Manufacturing: The initiative encourages the growth of Indian industries and a reduction in dependence on imports.
Job Creation: As local manufacturing ramps up, Atmanirbhar Bharat aims to create numerous job opportunities within the country.
Global Competitiveness: It envisions India developing products and services that can compete on the global stage, enhancing “Make in India” efforts.

74
Q

Five Pillars of Atmanirbhar Bharat
DEVIS

A

Economy: Focuses on quantum jumps and not just incremental changes to drive economic growth.

Infrastructure: Aims to build world-class infrastructure that acts as the backbone for a thriving economy and attracts investors.

System: Emphasizes creating a robust system built on technology and efficient processes.

Vibrant Demography: Leverages India’s young and diverse population as a core strength. According to the World Population Review, India has the world’s largest youth population, with over 600 million people between the ages of 15 and 35 World Population Review, India Population 2024

Demand: Stimulates and utilizes domestic demand to drive growth.

75
Q

Focus Areas and Key Schemes

The Atmanirbhar Bharat campaign

A

MSME Support: Providing credit access and collateral-free loans through schemes

Agriculture: Enhancing agricultural productivity and profitability through a multi-pronged approach

Manufacturing: Promoting domestic production through incentives and production-linked incentive (PLI) schemes across various industries like electronics, textiles, pharmaceuticals, etc.

Infrastructure Development: Investments in building essential infrastructure like roads, power, and logistics.

Defense Production: Encouraging self-reliance in defense manufacturing, promoting indigenous production.

76
Q

What is the Framework Regarding Labours in India?

Concurrent List

A

Labor falls under the Concurrent List of the Indian Constitution. This means both the Central and State governments can legislate on labor matters.

77
Q

What is the Framework Regarding Labours in India?

Fundamental Rights

A

The Constitution enshrines various fundamental rights relevant to labor:

Equality before the law and equal protection of the laws (Article 14)

Prohibition of discrimination on the grounds of religion, race, caste, sex, or place of birth (Article 15)

Prohibition of trafficking, forced labor, and child labor (Articles 23 & 24)

Freedom of association (Article 19)

Article 16: It talks about the right of equal opportunity in the matters of public employment

Article 39(c): It specifies that the economic system should not result in the concentration of wealth and means of production to the detriment of the entire society.

78
Q

Recent Labor Reforms

A

The government has consolidated 29 central labor laws into four labor codes:

The Code on Wages, 2019
The Industrial Relations Code, 2020
The Code on Social Security, 2020
The Occupational Safety, Health, and Working Conditions Code, 2020

79
Q

What are the Benefits of Labour Codes?

A

1. Simplification and Consolidation:
a. Reduced Compliance Burden The codes replace 29 laws, simplifying compliance for businesses.
b. Uniform Definitions - consistency in definitions across labor laws.

2. Enhanced Worker Protection:
a. Universal Minimum Wage
b. Social Security for All
c. Improved Occupational Safety

3. Flexibility for Businesses:
a. Fixed-Term Employment
b. Easier Industrial Dispute Resolution

4. Promoting Economic Growth:
a. Improved Ease of Doing Business
b. Formalization of Employment

Gender Parity: All sectors must allow women to work at night,

80
Q

What are the Grey Areas Related to the Current Labour Reforms?

A

Concerns About Dilution of Workers’ Rights: Easier layoffs in smaller firms could diminish union power and lead to unfair practices.
Fixed-term employment might increase job insecurity and reduce worker benefits.
Concerns remain about the adequacy and implementation of social security schemes.
Limited Regulatory Oversight:
Self-certification by companies raises concerns about reduced oversight and potential violations.
Limited labor inspector capacity could hinder effective enforcement of the codes.
Potential for Increased Informalization:
Reforms may not offer strong enough incentives to formalize the vast informal sector.
Increased compliance burdens could push small businesses further into informality.
Concerns Regarding Federalism:
Centralized nature of the Codes limits state flexibility for tailoring laws to local needs.
Uneven implementation is possible due to varying capacity across states.
Ambiguities and Potential Loopholes:
Some sections of the Codes lack clarity and detailed implementation rules, potentially leading to confusion or exploitation.

81
Q

What are Gig Workers?

A

Independent Contractors: Gig workers are independent contractors who engage in temporary, project-based, or on-demand work.

Platform-based Work: Much gig work is facilitated by online platforms like Uber, Lyft, Swiggy, Zomato, Urban Company, etc.

Flexibility: A key characteristic defining this type of employment.

82
Q

Pros of Gig Work

For workers

A

Flexibility and Autonomy: Choice over when, where, and how much they work.

Side Income or Full-Time: Can be a source of supplemental income or primary work.

Skill Development & Networking: Develop experience and broaden their network.

83
Q

Pros of Gig Work

For businesses

A

On-Demand Workforce: Access to workers as and when needed without traditional employee costs.

Cost-Effective: Lower overhead costs compared to hiring full-time employees.

Specialized Skills: Tap into varied talent pools for specific tasks.

84
Q

Cons of Gig Work

For workers

A

Income Instability: No guaranteed income, fluctuations based on demand.

Lack of benefits: No traditional benefits like insurance, paid time off, or retirement plans.

Vulnerability and Job Security: Limited protection against arbitrary termination or unfair practices.

85
Q

Cons of Gig Work

For Businesses

A

Quality Control: Ensuring consistent quality can be a challenge.

Worker Loyalty: Gig workers may have less loyalty to a particular company.

86
Q

Impact on Economy and Labor Force

A

Growing Segment:
The gig economy is expanding rapidly. A 2023 study by McKinsey Global Institute estimates that there are 25-30% of workers in developed economies engaged in some form of independent work, and this number is expected to grow in the coming years.

Labor Market Transformation: Introduces a new form of work outside the boundaries of regular employment.

Increased Precarity: Potential for increased precarity and unstable work conditions.

Policy Challenges: The rise of gig workers raises questions about labor regulations, social safety nets, and taxation.

Gr B ESI (4 decks)

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