Aatmanirbhar Bharat: What all is needed in terms of robust legal reforms to make India a self-reliant nation

Terming the Rs 20 lakh crore package a major step in making the country 'Aatmanirbhar' (self-reliant), Prime Minister Narendra Modi had said India will set an example of economic revival to the world which is currently fighting the menace of coronavirus. In his address to the nation on May 12, the prime minister had announced massive financial incentives on the top of previously announced packages for a combined stimulus of Rs 20 lakh crore or 10 per cent of the GDP, saying the coronavirus crisis has provided India with an opportunity to become self-reliant and emerge as the best in the world. But, what all is needed in terms of robust legal reforms to make India self-reliant nation? Abhinav Kumar, Advocate at Supreme Court of India and Guest Faculty, LC-II, University of Delhi, sheds some light.

Abhinav Kumar says, "To bring the country's economy back on track, Prime Minister Narendra Modi announced a Rs 20 lakh crore big bang relief package “Self-reliant Bharat”. It is said in our scriptures ‘Eshah Panthah’which means this is the only way to make self-sufficient Bharat. He said, in addition to other key reforms like land, labour, liquidity India will need a robust legal and policy reforms to make 21st century as the century for India. During this pandemic, India has witnessed an unprecedented Migrant crisis. The Rs 20-lakh crore economic stimulus package tends to serve the people affected grossly by the coronavirus lockdown which mainly include the labourers and the farmers, considering their predicament during these tough times. But, the question arises, how legal reforms will be enforced to bring the desired transformation to create the dream of Aatma Nirbhar Bharat in the 21st century?"

Legal Reforms for Inter-state Migrant Workers

Abhinav Kumar says, "On May 26, Supreme Court taking Suo moto cognizance by three-judge Bench said there have been “inadequacies and certain lapses” on the part of the Central and State governments in dealing with the migrant workers crisis during the lockdown. Various state high courts like Karnataka, Gujarat has taken their cognizance on this issue as well. With the onset of the unprecedented global crisis that is quite evidently sweeping economies off their bearable fiscal deficit grounds, the issue of mass Exodus, akin to a ‘reverse migration’ phenomenon has surfaced lately which shifts the spectrum of discussion to that of Inter-State workers, who stand at the brink of suffering multiple losses while being left out of the welfare schemes that could have stopped their living conditions from getting worse. According to “The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979” is a statutory shield to protect migrant workmen, entitle them wages, displacement allowance, journey allowance, during this period. Additionally, the Contractors are also under obligation to guarantee regular payment, non-discrimination, provisioning of suitable accommodation, free medical facilities other essential assistance. The Act was brought into force to avert the exploitation of inter-state migrant workmen by contractors, and to safeguard just and reasonable conditions of service."

Kumar adds, "While the formal sector, with contractual obligation with its employer, is eligible for compensation and protection through Acts like The Factories Act 1948, The Equal Remuneration Act 1976, etc. the women and men workers in the informal sector are particularly vulnerable with their little paid jobs lack of cashflow or even loss of payment. A lot of these jobs are excluded from social schemes which means no permanent access to healthcare, maternity benefit or minimum hygienic conditions in the workplace. There is a need to protect the legal rights of Inter-state migrant workers. Government need to strengthen the labour laws to protect the majority of workers in the country. State government has to comply with the union government."

Proposed Labour Law Reforms

Further, Kumar says, "India’s labour laws reforms which was much needed become the need of the hour in this global pandemic to protect the emerging economic situation, facilitate easier compliance by establishments, promote ease of doing business and confirm labour welfare and wage and social security for workers.

In the year 2019 Government of India decided to formulate Labour Code into four parts. Union cabinet even approved part one of the code to pass the Codes on Wages Bill, 2019 to benefit about 50 crore workers. The Code of Wages Bill is the first in the series of four labour codes. It seeks to subsume relevant provisions of The Minimum Wages Act, 1948, Payment of Wages Act 1936, Payment of Bonus Act Act, 1965 and Equal Remuneration Act 1976. As per the new labour legislation that would amalgamate 44 labour laws underneath four types- wages, social security, industrial safety & welfare, and industrial relations."

Supportive Legal Compliances for Ease of Doing Business

"The huge bailouts package of ₹20 trillion ($265 billion) stimulus package, in one of the world’s most aggressive reforms in recent history in terms of size which is about 10% of India’s GDP can be the game-changer. India needs single-window clearance for startups to meet their legal compliances. Labour laws should be also brought on the line to meet the challenges of both sides. According to the World Bank, Ease of Doing Business Index, India was ranked 63 in 2019. In 2020 India must live on the same spirit to fulfil the dream of Aatma Nirbhar Bharat in 21st century. India needs supportive legal compliances to boost the start-ups and business sector in the country," says Kumar.

Way Forward

"Indian Government need to push for the robust legal and policy changes to categorically influence the key sector from this bailout package. Without the successful implementation legal mechanism, talk of India’s quest to become global leader in 21st century is fallacious. India needs to create the balance between Industries and employees. The major suggestion to the Government is that they need to remain vigilant to the global developments amidst this pandemic and lay down the probable legal reforms to generate more employment in a market with robust labour regulations. India need to attract investment so we do need regulate the legal mechanism regarding the same. We need to regulate the tax laws as well since tax payment is major concern for SMSEs sector and the start-ups. Furthermore, India has to push for mandatory legislative reforms to pave the pathway for Aatma Nirbhar Bharat and the recently announced 20 lakh crore packages is a major step in that direction. It is apparent that apart from development, present Modi led government is working with a bigger goal to create a self-reliant India," Kumar concludes.

(Views expressed are personal)