66  New Dynamics of the Indian Labour Market: Liberalisation, Globalisation, Technology and AI, Gig and Platform Work, Remote Work and Hybrid Models, Skill India, Female Re-Entry, Four Labour Codes (2019-20), e-Shram, Make-in-India / PLI and Future of Work

66.1 A Labour Market in Transition

The Indian labour market today is undergoing its most significant transformation since 1991. Liberalisation opened private and foreign capital; globalisation connected Indian workers to Bangalore IT campuses and Dubai construction sites; technology and AI are reshaping routine work; gig and platform work has created a new class of workers; the pandemic triggered remote and hybrid work; the four labour codes (2019-20) consolidated 29 statutes; Skill India seeks to bridge the skill gap; and female LFPR is finally rising. This chapter consolidates the new dynamics.

66.2 1 · Liberalisation and Its Labour-Market Effects (1991-)

TipLPG Reforms and Labour Market

Aspect	Impact
End of Licence Raj	More private investment, jobs in services
Public sector decline	Government jobs as share fell
Contract labour expansion	Flexibilisation of organised sector
MNC inflow	Foreign-direct-investment-driven employment
Wage divergence	Skilled wage premium widened
Decline of unions	Membership and bargaining power fell
Informalisation within formal	Contract workers in factories

66.3 2 · Globalisation and Indian Labour

TipGlobalisation Effects

Channel	Effect
IT/ITES boom	Bangalore, Hyderabad, Pune, Chennai — global services exports ($200+ bn)
Migration outflow	Gulf workers (8-9 million Indian diaspora workers in Gulf)
Remittances	India largest globally at ~ USD 125 bn (2023-24)
Global value chain integration	Textile, gems, auto components
Race to the bottom in low-skill	Garment sector competing with Bangladesh, Vietnam
WTO and GATS	Cross-border services trade rules

66.4 3 · Technology and AI

TipTechnology Impact on Indian Labour

Trend	Substance
Automation	Routine factory and clerical jobs threatened
AI and ML	Knowledge-work disruption — software, legal, accounting
Robotics	Automotive, electronics manufacturing
Digital payments / fintech	New roles (UPI, BHIM, e-Wallets)
Skill obsolescence	Continuous reskilling needed
Platform algorithms	Pricing, allocation by AI

NITI Aayog’s “National Strategy for Artificial Intelligence” 2018 — #AIforAll — outlined India’s approach.

66.5 4 · Gig and Platform Economy

TipIndian Gig and Platform Economy

Aspect	Value
Size	~ 7-8 million in 2020-21 (NITI Aayog India’s Booming Gig and Platform Economy 2022)
Projection	~ 23 million by 2029-30
Major platforms	Uber, Ola (ride-hail); Swiggy, Zomato, Dunzo (food delivery); Urban Company, Housejoy (services); Amazon Flex (logistics)
Worker classification	Non-employees per platform; “gig worker” per Code on Social Security 2020
Welfare statutes	Rajasthan Platform-Based Gig Workers Act 2023; Karnataka Gig Workers Welfare cess

66.6 5 · Remote and Hybrid Work

The pandemic from March 2020 forced remote work in IT and other knowledge sectors. Post-pandemic:

• Hybrid model — 2-3 days office, rest remote — dominant in IT.
• Digital nomadism — Indians and foreigners working from Goa, Bali.
• WFH legal status — no explicit statutory framework.
• Productivity — mixed evidence; collaboration loss.
• Real estate — commercial space rationalisation.

66.7 6 · The Four Labour Codes (2019-20) — Consolidation

TipFour Labour Codes

Code	Subsumes	Year
Code on Wages	Minimum Wages, Payment of Wages, Payment of Bonus, Equal Remuneration	2019
Industrial Relations Code	Industrial Disputes, Trade Unions, Industrial Employment (Standing Orders)	2020
Code on Social Security	EPF, ESI, Maternity, Gratuity, ECA, BOCW Cess, USSA, etc.	2020
OSH&WC Code	Factories, Mines, Plantations, Contract Labour, ISMW, BOCW, Cinema, etc.	2020

NotePYQ anchor — W-I-S-O Mnemonic

The four labour codes can be remembered with the mnemonic W-I-S-O — Wages, IR, Social Security, OSH&WC.

66.7.1 Key Innovations

• Threshold liberalisation — IR Code raises Section 25K (closure / retrenchment / lay-off) threshold from 100 to 300 workers.
• Fixed-term employment with pro-rata gratuity.
• Gig and platform workers recognised.
• Strike notice — 14-day notice in all industrial establishments.
• National OSH Advisory Board.

66.8 7 · Female Labour Force Re-Entry

After a decline from 32 % (2004-05) to 23 % (2017-18), female LFPR rose to 37 % (2022-23). Drivers:

• Education — more women completing tertiary education.
• Rural employment — self-employment growth.
• Migration — rural women returning to agriculture.
• Pandemic stress — household income shocks pushed women into work.
• Government schemes — DAY-NRLM (Aajeevika), self-help groups.

66.9 8 · Skill Development Mission

TipSkill India Initiatives

Programme	Year	Substance
National Skill Development Corporation (NSDC)	2008	Public-private partnership
National Skill Development Mission	2015	Umbrella
PMKVY (Pradhan Mantri Kaushal Vikas Yojana)	2015	Short-term skilling
Skill India Mission	2015	Brand umbrella
National Apprenticeship Promotion Scheme	2016	Apprenticeship
Sankalp	2017	Skilling for the marginalised
National Apprenticeship Training Scheme (NATS)	Continued	Graduate / diploma apprentices
Recognition of Prior Learning (RPL)	Continuing	Validates informal skills

66.10 9 · Make-in-India and PLI

• Make-in-India (2014) — manufacturing-led job creation.
• Production-Linked Incentive (PLI) scheme (2020 onwards) — covers 14 sectors (electronics, auto, pharma, textile, etc.); aimed at job-creating manufacturing.
• Goal — manufacturing share to 25 % of GDP from current 17 %.

66.11 10 · Future of Work — ILO Vision (2019)

The ILO Centenary Declaration (2019) and the Global Commission on Future of Work (2019) emphasise:

• Universal labour guarantee — minimum rights for all workers regardless of contract.
• Investment in people’s capabilities — lifelong learning.
• Investment in institutions of work — social dialogue, social security.
• Investment in decent and sustainable work — climate-just transition.

66.12 11 · e-Shram Portal and Universal ID

The e-Shram portal (launched August 2021) registers unorganised workers — over 30 crore registered by 2024 — enabling targeted welfare delivery.

66.13 12 · Challenges

• Job quality rather than quantity.
• Skill mismatch persisting.
• Female participation — only partial recovery.
• AI-displacement risk — IT services white-collar disruption.
• Federal-state coordination under codes.
• Implementation of new codes pending in many states.

66.14 Practice Questions

Q 01LPGMedium

A labour-market effect of LPG (1991) was:

• ADecline of union bargaining power and rise of contract labour
• BRise of public sector employment
• CDecline of services
• DRise of agriculture as share of GDP

View solution

Correct Option: A

Union decline + contract labour rise.

Q 02CodesEasy

The four labour codes mnemonic is:

• AW-I-S-O
• BA-B-C-D
• CP-Q-R-S
• DL-M-N-O

View solution

Correct Option: A

Wages, IR, Social Security, OSH&WC.

Q 03Gig 2030Hard

NITI Aayog's projection for India's gig workforce by 2029-30 is:

• A~ 5 million
• B~ 23 million
• C~ 100 million
• D~ 1 billion

View solution

Correct Option: B

~ 23 mn projection.

Q 04IR CodeHard

The IR Code 2020 raises the Section 25K threshold from 100 to:

• A200
• B300
• C500
• D1000

View solution

Correct Option: B

100 → 300 workers.

Q 05PLIMedium

The PLI scheme targets manufacturing share of GDP at:

• A10 %
• B17 %
• C25 %
• D50 %

View solution

Correct Option: C

25 % target.

Q 06e-ShramMedium

e-Shram portal launched in:

• A2018
• B2020
• CAugust 2021
• D2024

View solution

Correct Option: C

August 2021.

Q 07NSDCMedium

NSDC was established in:

• A2002
• B2008
• C2015
• D2020

View solution

Correct Option: B

2008 PPP.

Q 08GulfMedium

Indian diaspora workers in Gulf number approximately:

• A1 million
• B3 million
• C8-9 million
• D50 million

View solution

Correct Option: C

~ 8-9 million Indians in Gulf countries.

Q 09ILO 2019Hard

The ILO Centenary Declaration (2019) emphasises:

• AFuture of Work — universal labour guarantee, lifelong learning, institutions, decent work
• BMinimum wage of $5
• CBan on overtime
• DIncrease of working hours

View solution

Correct Option: A

Centenary Declaration on Future of Work.

Q 10AIHard

NITI Aayog's national strategy on AI (2018) is branded:

• A#AIforAll
• B#DigitalIndia
• C#MakeInIndia
• D#StartupIndia

View solution

Correct Option: A

#AIforAll.

Q 11MakeMedium

Make-in-India was launched in:

• A2009
• B2014
• C2020
• D2023

View solution

Correct Option: B

25 September 2014.

Q 12e-Shram countMedium

e-Shram registrations have crossed approximately:

• A3 crore
• B30 crore
• C100 crore
• D1 crore

View solution

Correct Option: B

~ 30 crore by 2024.

Q 13MatchHard

Match code with year:

(i)	Code on Wages	(a)	2020
(ii)	IR Code	(b)	2019
(iii)	CSS	(c)	2020
(iv)	OSH&WC Code	(d)	2020

• A(i)-(b), (ii)-(a), (iii)-(c), (iv)-(d)
• B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
• C(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
• D(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)

View solution

Correct Option: A

Wages 2019; other three 2020.

Q 14Strike noticeHard

Under IR Code 2020, strike notice is required in:

• AOnly public utility services
• BAll industrial establishments (14 days)
• COnly manufacturing
• DBanks only

View solution

Correct Option: B

14 days across all establishments.

Q 15PMKVYMedium

PMKVY is:

• APradhan Mantri Kaushal Vikas Yojana — short-term skilling
• BOld-age pension
• CMaternity scheme
• DCrop insurance

View solution

Correct Option: A

Skilling under Skill India.

Q 16PandemicMedium

The pandemic accelerated:

• ARemote and hybrid work in services
• BFull return to factory work
• CDecline of digital payments
• DRise in agriculture share permanently

View solution

Correct Option: A

Remote work surge.

Q 17PLI sectorsHard

PLI scheme covers approximately:

• A3 sectors
• B14 sectors
• C50 sectors
• DAll sectors

View solution

Correct Option: B

14 sectors.

Q 18Fixed-termMedium

A key innovation of the four codes is:

• AFixed-term employment with pro-rata gratuity
• BLifetime employment for all
• CNo retrenchment ever
• DUniversal pension

View solution

Correct Option: A

Fixed-term explicitly recognised.

Q 19RemittanceHard

India's annual remittance inflow (2023-24) is approximately:

• AUSD 25 billion
• BUSD 125 billion
• CUSD 500 billion
• DUSD 1 trillion

View solution

Correct Option: B

~ USD 125 bn — world's largest.

Q 20DAY-NRLMHard

DAY-NRLM (Aajeevika) targets:

• ASelf-help groups of rural women
• BUrban factory workers
• CCivil services
• DMigrant doctors

View solution

Correct Option: A

Rural Livelihoods Mission — SHGs of women.

66.15 Quick Recall

ImportantQuick recall

• LPG (1991) — contract labour rise, union decline, services boom, public sector contraction.
• Globalisation: IT/ITES exports $200+ bn; Gulf migration 8-9 million; remittance USD 125 bn (world’s largest).
• Technology: AI, ML, robotics; NITI Aayog #AIforAll (2018).
• Gig and platform: ~ 7-8 mn now; ~ 23 mn by 2030 (NITI 2022 report).
• Four labour codes: W-I-S-O — Wages 2019; IR / Social Security / OSH&WC 2020. Subsume 29 central laws.
• Innovations: 300-worker threshold; fixed-term employment; gig/platform recognition; 14-day strike notice.
• Female LFPR recovery: 23 % (2017-18) → 37 % (2022-23).
• Skill ecosystem: NSDC (2008), Skill India / PMKVY (2015), NATS, RPL, Sankalp.
• Make-in-India (2014), PLI (2020, 14 sectors) — manufacturing target 25 % GDP.
• e-Shram (Aug 2021) — 30 crore unorganised workers registered.
• ILO Centenary Declaration (2019) — Future of Work, universal labour guarantee.