Opinion | India needs labour law reform but must do it the proper way
The attempts of states to change laws without debate and in wrong areas could evoke opposition even to genuine reforms
For years, economists, including your columnist, have been crying hoarse about the failure of successive Indian governments to reform laws and regulations that govern factor markets — land, labour and capital — but especially labour. These are the so-called “second-generation" reforms — the “first generation" reforms, of markets for goods and services, having occurred with India’s economic liberalization in 1991 and continuing in spurts through the early 2000s. Pointedly, the Manmohan Singh-led government (2004-14) failed to pursue any meaningful reforms during its two innings in power.