India: Regulatory Changes Aimed at Leveraging Position as an IT Hub

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Traditionally held back by notoriously slow bureaucracies and too much regulation, India is consolidating 44 labor laws into just four in an attempt to modernize its labor laws.

To attract new employers, India wants to leverage its position as an IT hub and position itself as the world’s largest resource for IT worker outsourcing by making itself more business-friendly. The goal of this consolidation is to allow employers have more flexibility, as well as create a transparent hiring process when adding more workers to employers’ organizations.

Two of the four codes are already in the process of being consolidated: the code regarding wages and the code concerning industrial relations. Talks for the other two laws, one covering the code on safety and working conditions and the other covering worker social security and welfare, are scheduled to be held among the central and state governments, trade unions and employers represented by the top industry chamber.

Once all four laws have been put in place, employers should find that ease of compliance and reduced multiplicity will make hiring contingent labor faster and easier. India offers employers a highly productive and attractive alternative due to their large labor pool, high percentage of English speakers, improving education system and decreasing regulations.