UPSC Daily Answer writing practice GS-3 #18

The most important and most neglected part for Civil Services Preparation is answer writing. It is not about HOW MUCH YOU STUDY but CAN YOU WRITE within word limit and time frame. After UPPCS daily answer writing practice and  UKPCS DAILY ANSWER WRITING PRACTICE, ORACLE IAS comes out with new initiative UPSC DAILY ANSWER WRITING PRACTICE.

‘Pending Labour law reforms are holding back the animal spirits of the private sector.’ Critically analyse the above statement in context of the proposed labour code. (250 words)

‘श्रम कानून सुधारों में देरी निजी क्षेत्र की गति को अवरोधित कर रही है।’ प्रस्तावित श्रम संहिता के संदर्भ में उपरोक्त कथन का आलोचनात्मक विश्लेषण करें।



Need of Labour Law reform,


Detail issues with existing laws

Brief description of pending reforms and proposals therein

Ensure pros and cons are mentioned




Model Answer

Labour is a concurrent subject having dozens of laws by State and Central governments. This multiplicity of laws and over regulation is one of the factor responsible for lack of private investment in India. The other issues that arise from archaic labour laws are:-

  1. Licence permit raj that impedes growth of firms and promotes dwarfism as pointed out by the Economic Survey..
  2. Discourages foreign investment in India as firms avoid over regulated destinations.
  3. Protects only the organised labour(about 10 % of total) at the expense of unorganised labour which lack any opportunities.
  4. Firms are unable to hire for seasonal work temporarily. This impacts their flexibility.
  5. All these factors impact overall Ease of Doing Business in India.

To resolve these issues, Govt of India has recently proposed to replace 44 labour laws by grouping them into 4 codes:-

  • On wages
  • On industrial relations
  • On Social security
  • Industrial safety

These rules provide for minimum wages, timely payment of wages, and gender neutrality etc. The use of technology is proposed to ease inspections and make the Inspector a facilitator.  All these are important to ensure a successful Make in India programme. However these have been criticised on various counts:-

  1. These favour industrialists as proposed inspections are less stringent.
  2. These seek to perpetuate the contractual labour, which lack job security and indemnify principle employer of any liability.
  3. There is no security for 85% of labour, which is in informal or unorganised sector.
  4. Some sectors like IT, media etc. have been left out. Also apprentices are not covered by these.


It is certainly true that India of 2020 cannot be governed by laws of 1950 when the factors of production, skill sets and the very nature of employment has undergone a sea change. But the government should ensure that apart from ease of doing business, ease of living for labours is also taken care of.