News Headlines, English News, Today Headlines, Top Stories | Arth Parkash
India’s economic rise, workers’ fall – the missing link of labour law enforcement India: a rich country with poor workers – why labour laws matter more than GDP
Monday, 07 Jul 2025 00:00 am
News Headlines, English News, Today Headlines, Top Stories | Arth Parkash

News Headlines, English News, Today Headlines, Top Stories | Arth Parkash

India is now the world’s 4th largest economy. But at the same time, 81 crore people still need free food grains under government schemes. Isn’t that a shocking reality? This shows a clear gap between India’s rising GDP numbers and the lives of its common people. The truth is simple – just economic growth is not enough. If India truly wants to fight poverty, it must focus on enforcing labour laws that have existed for decades.

GDP alone won’t solve poverty

Our GDP is growing, but poverty is still here. Why? Because fair wages and decent working conditions are still a dream for millions of workers, especially in the informal and unorganised sectors. The youth unemployment rate in May 2025 was 17.9% in urban areas and 13.7% in rural India. These numbers will not change unless we reduce working hours and give jobs to more people.

Overwork, underpaid

Many workers in small factories or shops work 10–12 hours a day. But they don’t even get paid overtime. According to the Factories Act, 1948, and Shops and Establishment Acts in states, a worker should work only 8 hours a day or 48 hours a week. If we start following this law, more people can be hired, and unemployment will drop.

Even minimum wages not paid

It’s sad that many workers are not even paid the legal minimum wage. This includes workers in the formal sector who are hired on contract. Employers are supposed to follow rules and share wage data in EPF and ESI reports. But these reports show clear violations. Sadly, nobody acts on them. I myself raised this before the Second National Labour Commission, but nothing changed.

ESI – A good Law poorly enforced

The Employees' State Insurance (ESI) Act is meant to provide medical help, salary during sickness, and pensions in case of death. But most small factories don’t register for ESI. They also exclude contract workers. If followed properly, this law alone can make workers' lives better.

Contract Labour Law being weakened

The Contract Labour (Regulation and Abolition) Act, 1970 was meant to stop unfair use of contract workers. But states like Maharashtra have made it weaker by increasing the threshold from 20 to 50 workers. No big industry has ever been stopped from using contract labour even after 50 years.

There is a law from 1979 that protects inter-state migrant workers. It promises fair wages, travel money, medical help, and housing. But most of these rights are ignored. Migrant workers continue to live and work in poor conditions, especially during disasters or emergencies.

The Bonded Labour System (Abolition) Act was passed in 1976. But bonded labour still exists in India. The government wants to celebrate its 50th year by inviting 100 rehabilitated bonded labourers to the Independence Day event. While symbolic, this shows we haven’t solved the real problem.

ALSO READ: MPs from all parties urge Bharat Ratna for Dalai Lama, suggest Parliament address

ALSO READ: Water scarcity and its impact on global food security

Women still paid less

The Equal Remuneration Act says men and women must be paid equally for the same work. The Supreme Court also supports this. But even today, women earn less than men for similar jobs, clearly breaking both the law and the Constitution.

Two Simple Steps the Government Can Take

There are two big things the government can do to help right away:

  1. Raise the EPF Pension – Currently, pension under the EPF scheme is just ₹1,000. This has not changed since 2014. Trade unions demand ₹7,000. Many state pensions for poor senior citizens are higher than the central EPF pension.

  2. Improve MGNREGS – The rural job scheme now offers 100 days of work. It should be raised to 150 days with ₹400 daily wage as recommended. But sadly, the central budget for this scheme hasn’t increased this year.

India is rich in GDP but poor in policy. The government is proudly giving free food to over 80 crore people – but that only shows the failure to ensure jobs and wages. The poor don’t want charity. They want jobs, justice, and dignity.

Unless India starts seriously enforcing its labour laws and giving fair wages, “Sabka Vikas” will just remain a slogan. Economic growth must go hand in hand with workers' rights. Otherwise, we will continue to be a rich country with poor people.