<p>The government has recently overhauled its labour and rural‑employment architecture by rolling out the <span class="key-term" data-definition="Labour Codes – a set of four consolidated statutes that replace numerous older labour laws, aimed at simplifying compliance and improving labour market flexibility (GS3: Economy)">Labour Codes</span> and enacting the <span class="key-term" data-definition="Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 – legislation that supersedes MGNREGA, promising guaranteed rural employment under a re‑designed framework (GS3: Economy)">Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025</span>. The new law replaces the long‑standing <span class="key-term" data-definition="Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – flagship scheme guaranteeing 100 days of wage employment per year to rural households (GS3: Economy)">Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)</span>, raising concerns about the welfare of <span class="key-term" data-definition="Informal workers – persons employed in unregistered, low‑skill or low‑pay jobs without statutory social security benefits (GS3: Economy)">informal workers</span> and the broader rural populace.</p>
<h3>Key Developments</h3>
<ul>
<li>Consolidation of over 40 labour statutes into four <strong>Labour Codes</strong> aimed at easing regulatory burden on enterprises.</li>
<li>Passage of the <strong>Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025</strong>, which repeals MGNREGA and introduces a new employment guarantee mechanism.</li>
<li>Official narrative asserts that <span class="key-term" data-definition="Inequality – the gap in income, wealth, or access to services among different sections of society (GS3: Economy)">inequality</span> is now a lesser concern compared with the early 2010s, despite persistent data‑quality issues.</li>
<li>Recognition that <span class="key-term" data-definition="Data comparability – the ability to compare statistical indicators across time periods without methodological distortions (GS3: Economy)">data comparability</span> challenges hinder a clear assessment of the impact of these reforms.</li>
</ul>
<h3>Important Facts</h3>
<p>• The <strong>Labour Codes</strong> were operationalised in 2024, covering wages, social security, occupational safety and industrial relations. • The <strong>Viksit Bharat‑Guarantee</strong> Bill, introduced in 2025, promises a flexible, demand‑driven employment model, but reduces the guaranteed days of work from 100 to 75 per year. • Critics argue that the shift may dilute the social safety net for <span class="key-term" data-definition="Informal workers – persons employed in unregistered, low‑skill or low‑pay jobs without statutory social security benefits (GS3: Economy)">informal workers</span>, who constitute roughly 90% of India’s workforce.</p>
<h3>UPSC Relevance</h3>
<p>Understanding these polic