SNAPSHOTS

India's Labor Codes: Challenges to Nationwide Adoption

Aug 15, 2025 | 16:45 GMT

Workers at the Samsung plant in Sriperumbudur, India, stage a protest to demand higher wages and recognition of their union on Sept. 11, 2024.
Workers at the Samsung plant in Sriperumbudur, India, stage a protest to demand higher wages and recognition of their union on Sept. 11, 2024.

(R.SATISH BABU/AFP via Getty Images)

India's new labor codes, intended to streamline regulations, modernize the workforce and attract investment, will likely face prolonged delays and uneven implementation due to political resistance, trade union opposition and state-level administrative challenges, leading to regulatory fragmentation and widening gaps in investment, job creation and worker protections across states. India's long-delayed labor reform effort remains stalled as implementation of the four labor codes passed in 2019-2020 continues to face political, administrative and legal obstacles at the state level. The reforms, which seek to overhaul India's outdated and fragmented labor laws, came amid Prime Minister Narendra Modi's broader push to improve the ease of doing business and attract investment by simplifying regulations. However, the codes have not yet been implemented because of political opposition, administrative challenges and resistance from trade unions that fear the reforms may weaken worker protections....

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