Gist of Editorials: The Missing Piece | GS – III

Relevance :  GS Paper  II


Recently, the cabinet approved the Labour Code on Industrial Relations, 2019.

Significance of the Code

This Code marks the merging of provisions of the Industrial Relations Act, the Trade Union Act and the Industrial Employment Act.

Other labour reforms under process

Underway is the amalgamation of 44 national labour laws into four codes .

Importance of labour reforms  

  • more productivity in manufacturing
  • generation of more jobs

Way forward

  • Greater flexibility required on these laws to generate more jobs.
  • Vietnam, Indonesia and Bangladesh are way ahead in labour reforms and hence far more competitive. India cannot afford to remain behind.


Any delay or failure to push through labour reforms could further hurt economic growth.