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The missing half of Viksit Bharat: A case for labour codes as growth strategy

For India to become a $30 trillion economy by 2047, increasing womens workforce participation is imperative. Female labour force participation stands at 41.7%, and Viksit Bharat aims to raise this to 70%. Bridging this 30-point gap, atits core, is about unlocking national productivity and ensuring Indias growth story is shaped by all, not just half. Despite gains in education, digital access, and entrepreneurship, much potential remains untapped. India must build a labour ecosystem that enables women to enter, remain, and advance, and the implementation of Indias unified labour codes presents a rare opportunity to dismantle these systemic barriers and convert inclusion into productivity. Consider thisSita, a registered e-Shram worker in Uttar Pradesh, stitches garments at home for a contractor, earning an irregular income while raising two children with no access to childcare. For women like her, the new labour codes can be a gamechanger. A nearby textile factory is now hiring women for shift work with formal contracts. For the first time, Indias labour law architecture is poised to become an enabler rather than a barrier for millions of women like Sita. The labour codes, enacted between 2019 and 2020, consolidate 29 fragmented laws into four streamlined frameworks: the Codes on Wages, Social Security, Occupational Safety, and Industrial Relations. The legislative intent is bold, and now multiple states are rapidly moving towards rolling them out. India has a crucial window to translate intent into impact, and heres what this impact looks like. Social security: Visibility as a first step The Code on Social Security establishes a National Social Security Board for gig and unorganised workers, covering maternity, health insurance, pensions, and childcare. The e-Shram portal has over 30.6 crore workers registered, of which 53%, i.e., 16 crore are women. The linkage between the portal and the Aadhaar-based UAN makes these entitlements portable across locations and sectors. This infrastructure can reduce attrition during major life transitions like childbirth or caregiving. Visibility is just the first step. The linkage of registration to welfare delivery systems must be fast-tracked to ensure women dont just have IDs, but access to real support. This could redefine how we protect and retain women across their employment lifecycles. Care as economic infrastructure Ask any woman why she left a job, and the answer often circles back to one word -- childcare. The Occupational Safety, Health and Working Conditions Code tackles just this, by enabling clusters of MSMEs, who employ 62% of Indias workers, to jointly set up creches, distributing the cost of care, and converting it from a compliance burden to an enabling economic infrastructure. States must now partner with industry associations to operationalise these creches at scale, especially in industrial corridors and SEZs, so that no mother has to choose between a job and her childs care. Opening doors to round-the-clock economy Section 43 of the OSH Code permits women to work in any sector, including night shifts between 7 pm and 6 am, and even in mines, provided they consent and adequate safety measures are ensured. The economic logic is clear. Enabling women to participate in growth sectors that operate round the clock creates a win-win for inclusion and competitiveness. As best practices emerge and are shared across states, we can expect wider adoption and refinement of these enabling provisions. Institutionalising womens voices: A seat at the table The Code on Wagesamong the most thoughtful reformsmandates that one-third of all Central and State Advisory Board members be women. These boards are empowered to shape wage policy, expand womens employment, and advise on flexible work arrangements. This institutional design is essential for building policies that reflect the realities of diverse workers, and making inclusion is made baseline, rather than an afterthought. As more states activate these boards, gender-responsive policy making will move from the margins to the mainstream. The new labour codes offer a foundational opportunity, and while the Centre has laid the groundwork, real transformation will happen at the state level, and our ability to scale. States that swiftly harmonise rules, integrate social security systems, activate advisory boards, and track gender-disaggregated outcomes will lead on employment metrics. These codes are not silver bullets, but they are powerful levers to address structural bottlenecks. Implemented right, they can expand Indias talent pipeline and unlock our demographic dividend exponentially. The labour codes must not be seen as bureaucratic reform, but as the scaffolding for an inclusive economy. With the rollout underway, India must act decisively to build a system that treats women not as beneficiaries, but as co-architects of Viksit Bharat. Arti Ahuja Former Secretary, Labour and Employment, Govt of India Karthick M P Assistant Vice President, Strategy and Research, Udaiti Foundation

24 Nov 2025 7:44 am