New Labour Codes Expected to Boost Indian Economy by Rs 75,000 Crore and Increase Formal Employment

Nov 26, 2025 12:47 am CST

India's new labour codes implemented on November 21 are projected to boost consumption by Rs 75,000 crore according to SBI economists. The reforms will likely increase formal workforce participation by 15%, expand social security coverage to 85% within three years, and reduce unemployment by 1.3%. These changes represent a significant transformation for India's labour market, benefiting approximately 10 crore workers shifting from informal to formal employment.