Why Modi Government Replaced 26 Labour Laws With 4 Codes: Mandaviya Explains At IEC 2025

Union Labour and Employment Minister Mansukh Mandaviya on Wednesday outlined the rationale behind Prime Minister Narendra Modi government's decision to repeal 26 labour laws and replace them with four

consolidated labour codes, saying the reforms were aimed at strengthening India’s workforce and supporting long-term economic growth.Speaking at the India Economic Conclave (IEC) 2025, Mandaviya said Prime Minister Narendra Modi had asked him to focus on two core strengths of the country - youth power and labour power - both of which are critical to achieving the goal of a developed India by 2047.He said the labour force would be a central pillar as India marks 100 years of Independence. With more than 40 crore workers engaged in manual labour, wage work and nation-building activities, Mandaviya said the government views workers as a priority segment that directly contributes to shaping the country’s future.

Mandaviya pointed out that India continued to be governed for decades by 26 labour laws framed before Independence, despite significant changes in working conditions and employment patterns over the last century.He said labour laws designed nearly 100 years ago were created for a very different era, when job structures and workplace realities were not the same as today. Yet, these laws remained in force even after 75 years of Independence. According to the minister, successive governments failed to substantially improve labour welfare or create conditions that allowed industries to grow at scale.Highlighting the link between industrial growth and employment generation, Mandaviya said policy-making must recognise the interdependence between the two. He argued that industries cannot function without workers, and workers cannot find jobs unless industries expand - a balance that, according to him, the new labour codes seek to address.Referring to the Modi government’s governance approach, Mandaviya said the administration shifted to a development-centric model focused on “reform, perform and transform.” He said this philosophy led to a comprehensive review of existing labour laws and the decision to modernise them.The minister said Prime Minister Modi had questioned whether the old set of 26 laws was suitable for the present era, prompting the government to repeal them and consolidate them into four labour codes. These codes were passed by Parliament in 2019-20 within a span of two years.Mandaviya acknowledged that implementation did not happen immediately, but said the Prime Minister later pushed for their early rollout. During this period, he said, there was significant debate and criticism around the labour codes.He said he personally held extensive discussions with trade unions to understand their concerns and the reasons behind opposition to the reforms. According to Mandaviya, many state governments eventually recognised that the labour codes were worker-centric and amended their local laws to incorporate the new provisions.He added that the Prime Minister had made it clear that the labour codes should be implemented uniformly across the country to ensure a common legal framework for workers and employers.Addressing criticism from some trade unions, Mandaviya said several others supported the reforms. He questioned who exactly the opposition was directed against, stating that the Modi government stood firmly with workers and was committed to working for their welfare.Explaining key features of the labour codes, Mandaviya said they are designed to protect workers' rights. He highlighted provisions ensuring equal wages for men and women, describing wage parity as a fundamental women's right.He also said the four labour codes provide assurance of minimum wages for workers across the country, reinforcing the government’s claim that the reforms are aimed at creating a fair, modern and worker-focused labour framework suited to India’s evolving economy.