Minimum Wages and Its Impact on Agriculture and Non Agricultural Sectors with Special Reference to Recent Labour Reforms in India

Authors: Bikash Kumar Malick

Abstract:

Labour reform is a most celebrated theme for policy makers, at the same time it is also a most misunderstood and skeptical concept even for the educated masses in India. One of the widely focused and discussed topics which needs an in-depth examination is India’s labour laws. It may actually help to reach points to understand the exact requirements in labour reforms by making the labour laws more simple and concise in form and its implementation. It is also a requirement to guide states in India in terms of making laws on it as Indian Constitution itself is federal in form and unitary in spirit. Recently, Codes of Wages Bill has been introduced in Indian Parliament while other three codes are waiting to come in the same line and those codes actually highlight the simplified features of labour laws to enable labour reform in a succinct manner. However, it still brings more confusion in minds of people. To wipe out the confusion and to bring a note and to put it for correlation among the labour reforms of both centre and states which both generates employment and make growth sustainable in India providing clear public understanding. This time is also ripe minimizing the apprehension about all the coming labour laws simplified in different codes in India. This article attempts to highlight the need of labour reform and its possible impact. It also examines the higher rates of minimum wages and its links with its coverage agriculture and nonagricultural sectors (including mines) over the period time. It also takes into consideration of central sphere and in states sphere minimum wage which are linked with Consumer Price Index to bring into account the living standard of workers and to examine the cause and effect between minimum wage and output in both agriculture and non agricultural sector with regression analysis. Increase in minimum wage has actually strengthened the sustainable output.

Keywords: codes of wages, indian constitution, minimum wage, labour laws, labour reforms