Lok Sabha Question No. 1284 (UNSTARRED), answered on 2023-12-11
Subject: Impact of Labour Reforms on Job Creation and Industrial Growth
Ministry: LABOUR AND EMPLOYMENT
Asked by: Mohammad Jawed

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 1284 TO BE ANSWERED ON 11 TH  DECEMBER, 2023

## IMPACT OF LABOUR REFORMS ON JOB CREATION AND INDUSTRIAL GROWTH

1284. DR. MOHAMMAD JAWED:

## Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) the status of the implementation of the recently passed Labour Reforms and their impact on job creation and industrial growth in the country;
- (b) the  measures  taken/being  taken  by  the  Government  to  address  the challenges faced by labourers in informal sector, particularly during the COVID-19 pandemic;
- (c) whether new jobs have been created under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY); and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) to (d): The Government has formulated four Labour Codes, namely, the Code on  Wages,  2019,  the  Industrial  Relations  Code,  2020,  the  Code  on  Social Security,  2020  and  the  Occupational  Safety,  Health  and  Working  Conditions Code,  2020  and  published  these  Codes  in  the  Official  Gazette  for  general information.  The  four  Labour  Codes  strengthen  the  protection  available  to workers,  including  unorganized  workers  in  terms  of  statutory  minimum  wage, social  security  and  healthcare  of  workers.  In  addition,  the  Codes  also  ease compliance mechanism aiming to promote ease of doing business/setting up of enterprises  and  catalyze  creation  of  employment  opportunities  while  ensuring safety, health and social security of every worker. As a step towards implementation of the four Labour Codes, rules are required to be framed by the Central Government  as  well  as  by  the State  Governments.  The  Central Government and a number of States/Union Territories (UTs) have pre-published the draft rules under 4 Labour Codes, inviting comments of all stakeholders.

Employment  generation  coupled  with  improving  employability  is  the priority  of  the  Government.  Accordingly,  the  Government  of  India  has  taken various steps for generating employment in the country.

Investments  in  Infrastructure  and  productive  capacity  have  a  large multiplier impact on growth and employment. The budget of 2023-24 proposed to increase capital investment outlay steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This substantial increase  in  recent  years  is  central  to  the  government's  efforts  to  enhance growth potential and job creation.

The Government of India has announced Aatmanirbhar Bharat package to provide  stimulus  to  business  and  to  mitigate  the  adverse  impact  of  Covid-19. Under this package, the Government is providing fiscal stimulus of more than Rupees Twenty Seven lakh crore. This package comprises of various long term schemes/programmes/policies for making the country self-reliant and to create employment opportunities.

The Aatmanirbhar Bharat Rojgar Yojana (ABRY) was launched with effect from 1st October, 2020 to incentivize employers for creation of new employment and restoration of loss of employment during Covid-19 pandemic. The terminal date for registration of beneficiaries was 31.03.2022.

Government is implementing Prime Minister Street Vendor's AtmaNirbhar Nidhi  (PM  SVANidhi  Scheme)  since  June  01,  2020  to  facilitate  collateral  free working capital loan to street vendors to restart their businesses, which were adversely impacted during the Covid-19 pandemic.

Government had launched the Garib Kalyan Rojgar Abhiyaan (GKRA) of 125 days on 20th June, 2020 to boost employment and livelihood opportunities for  returnee migrant workers and similarly affected persons including youth in rural  areas,  in  116  selected  districts  across  6  States  of  Bihar,  Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh.

Pradhan Mantri Mudra Yojana (PMMY) was launched by the Government for facilitating self-employment. Under PMMY, collateral free loans upto Rs. 10 lakh,  are  extended  to  micro/small  business  enterprises  and  to  individuals  to enable them to setup or expand their business activities.

The Production Linked Incentive (PLI) schemes is being implemented by the  Government with an outlay of Rs. 1.97 lakh crore, for a period of 5 years starting from 2021-22 which have potential for creating 60 lakh new jobs.

PM  GatiShakti  is  a  transformative  approach  for  economic  growth  and sustainable  development.  The  approach  is  driven  by  seven  engines,  namely, Roads,  Railways,  Airports,  Ports,  Mass  Transport,  Waterways  and  Logistics Infrastructure.  This  approach  is  powered  by  Clean  Energy  and  SabkaPrayas leading to huge job and entrepreneurial opportunities for all.

The  Government  of  India  is  encouraging  various  projects  involving substantial investment and public expenditure on schemes like Prime Minister's Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. DeenDayal Upadhyaya Grameen  Kaushalya  Yojana  (DDU-GKY),  Rural  Self  Employment  and  Training Institutes (RSETIs) and Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) etc. for employment generation in the country.

To enhance the employability of the youth, the Ministry of Skill Development  and  Entrepreneurship  (MSDE)  is  implementing the 'National Apprenticeship Promotion Scheme (NAPS)' wherein the Government reimburses 25 percent of the stipend payable to apprentices.

The Government is implementing a programme for skilling of rural youth for entrepreneurship development through Rural Self Employment and Training Institutes (RSETIs).

Besides these initiatives, various flagship programmes of the Government such as Make in India, Start-up India, Stand-up India, Digital India, Housing for All  etc.  are  also  oriented  towards  generating  employment opportunities in the country.

All these initiatives are expected to collectively generate employment in the medium to long term through multiplier-effects.

Pradhan  Mantri  Rojgar  Protsahan  Yojana  (PMRPY)  was  launched  with effect from 1.4.2016 to incentivise employers for creation of new employment. The  terminal  date  for  registration  of  beneficiaries  under  the  scheme  through establishment  was  31.03.2019.  The  beneficiaries  registered  upto  31st  March, 2019 continued to receive the benefit for 3 years from the date of registration under the scheme i.e. upto 31st March, 2022. Under the scheme, benefits have been provided to 1.21 crore beneficiaries through 1.52 lakh establishments.

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