Factor market reforms: States ahead of Centre in changing land, labour laws

This may be the time for a fresh look at the reform narrative

The economic policy discourse in India, particularly since the reforms of 1991, has rightly focused a lot on the need for ridding the land and labour policies of their rigidities. While reforms in many other areas got implemented bringing in measurable benefits for the economy, experts have consistently pointed out that India’s manufacturing revival to raise its share in gross domestic product to 25 per cent will remain a pipe dream unless factor market reforms took place to relax the country’s land and labour laws. 

The Narendra Modi government, formed in May 2014, raised hopes that it would be bold