In India, major labor law reforms will gradually make the economy more formalized, investor-friendly and competitive, but the near-term potential for uneven adoption across states will continue to create compliance challenges and legal risks for companies, while union strikes and protests will likely pose short-term disruptions. On Nov. 21, the Indian government implemented four labor codes that merge decades-old laws into a streamlined framework aimed at simplifying and standardizing regulations. The reform is the biggest of its kind in decades, and seeks to foster a more investment-friendly environment while also enhancing worker benefits through better regulating and expanding social security, workplace safety, gender equality and minimum wages. However, the new codes have drawn strong pushback from unions, which argue they give companies greater leeway in hiring and firing, determining wages and working hours, and undermining union influence. To this end, ten of India's largest trade unions -- which collectively comprise...
