Evaluating the Socio-Economic Impact of India’s New Labour Codes: A Study of Workers and Employers in Peenya Industrial Cluster, Bangalore

Abstract

India’s recent consolidation of its labour laws into four comprehensive labour codes represents a landmark shift in its labour regulatory landscape. This study critically evaluates the impact of these reforms on workers and employers within the Peenya Industrial Area in Bangalore, one of Asia’s largest and most diverse industrial hubs. Through a combination of field surveys, structured interviews, and stakeholder consultations, the research explores changes in employment conditions, wage structures, job security, social security coverage, and employer compliance mechanisms. While the reforms aim to foster a business-friendly environment by simplifying compliance and enhancing labour market flexibility, concerns have emerged regarding their implications for informal, contract, and gig economy workers. The study highlights contrasting perspectives: employers largely appreciate reduced bureaucratic hurdles, whereas many workers express apprehensions about diminished protections and enforcement. The findings underscore the need for a nuanced and inclusive policy approach that reconciles economic growth with equitable labour standards. This paper adds empirical depth to the national debate on labour reforms and their localized consequences in industrial ecosystems like Peenya.