India's 2025 Labor Reforms: ANZ's Analysis of Productivity Gains vs. Job Security Concerns

India implemented four labor codes on November 21,2025, replacing 29 existing laws to simplify compliance and align with global standards [3]. Richard Yetsenga, Group Chief Economist at ANZ, highlights that these reforms are expected to boost business productivity through reduced regulatory burden but raise job security concerns for some workers [0]. The Code on Social Security expands coverage to gig and platform workers, addressing a critical gap in India’s labor market [2], while state-level implementation rules remain pending, creating uncertainty for both businesses and workers [5]. The consolidation of laws aims to balance business flexibility and worker welfare, though the exact balance depends on state-specific guidelines [4].

1. Cross-Domain Balance
   : The reforms strike a mixed balance between enhancing business productivity (via simplified compliance) and protecting worker interests (via gig worker coverage), with Yetsenga’s commentary underscoring the tradeoff between these two goals [0][2].
2. Gig Economy Landmark
   : The inclusion of gig workers in social security is a first-of-its-kind provision in India, aligning with global trends in platform economy regulation [2].
3. State Implementation Uncertainty
   : Pending state-level rules mean the actual impact of the reforms will vary across regions, adding layers of complexity for businesses and workers [5].

• Risks
  : Job security concerns for workers (per Yetsenga [0]), short-term compliance disruption for businesses due to pending state rules [5], and uncertainty around enforcement of worker protections [4].
• Opportunities
  : Long-term productivity gains for businesses [0], expanded social security coverage for gig workers [2], and potential attraction of foreign investment due to simplified regulations [3].

• Implementation
  : Four labor codes (Wages, Industrial Relations, Social Security, Occupational Safety) implemented on Nov21,2025 [3].
• ANZ’s View
  : Productivity gains from regulatory simplification offset by job security concerns [0].
• Gig Worker Inclusion
  : The Code on Social Security covers gig/platform workers, a critical update for India’s labor market [2].
• State-Level Gaps
  : Procedural rules for implementation are pending, leading to regional variability in impact [5].