The changing world of work and labour market institutions in India

Abstract

During the last decade and half, India has witnessed significant changes in the world of work. There has been large-scale informalization of the labour force (93 per cent being the share of informal labour) (Government of India, 2015) and a corresponding growth in non-standard employment, a decline in social dialogue and tripartism, a weakening of trade unions, and a shift in focus from enforcement of labour laws to redistribution through various social security schemes. During the same time period, India has experienced considerable reforms in labour administration as well as labour legislation. Such reform initiatives have included increasing use of technology, greater focus on skill development and employment generation, introduction of social security and welfare schemes, and amendments of certain provisions of labour laws. In the process, the role of labour administration in India has undergone transformations which are administrative in nature and, unlike in earlier periods, not an outcome of rigorous social dialogue and tripartite consultation processes. A weakening of trade unions across the sectors and across States has further aggravated the situation (Sen Gupta, 2003). A unilateral administrative approach to reforms of labour administration have somewhat diluted the characteristics of ‘labour’ in labour administration in India. A State vis-à-vis citizen client relation has already replaced the erstwhile tripartite structure (State-Employer-Employee) based on redistribution in an environment of stagnating labour market regime.