'Mother of all reforms...': Arvind Panagariya says new labour codes end decades of rigid, job

Arvind Panagariya, Chairman of the 16th Finance Commission, called the rollout of India’s four labour codes the “Mother of all reforms,” arguing that decades of rigid labour laws had hindered the creation of productive factory jobs and kept workers in low-productivity sectors.

His remarks came as the government implemented the most sweeping reset of India’s labour system since Independence on November 21, 2025. The four codes—covering wages, industrial relations, social security, and occupational safety and health—replace 29 separate laws and establish a unified, modern framework to govern the country’s workforce. Advertisement

In a column in a newspaper, Panagariya said this shift represents a substantial reform in the country’s approach to labour regulation, aiming to modernise the l