New Labour Codes Suitable for Nature of Employment, GDP Growth: Secretary

The four labour codes enforced in November are suitable for the present nature of employment as well as the kind of economic growth happening in the country, a senior official said on Friday.

Addressing the National Logistics Summit 3.0 organised by PHDCCI, Union Labour Secretary Vandana Gurnani termed the new labour codes as a game-changer for a dynamic economy.

The complexities and the outdated laws have been done away with, and rules are now being streamlined into four codes enacted in 2019-20 and activated from November 21, 2025, she pointed out.

She said, "These codes are now fit for purpose in terms of what the current nature of employment is, and the significant economic growth India is witnessing." Gurnani mentioned about easing of various compliance norms, including the reduction in the number of registrations from 8 to one, 31 returns to one, and 87 registers to eight.

She emphasised that the new codes will ensure minimum wages, mandatory appointment letters, and enhanced social security for workers, alongside business-friendly shifts like inspector-led guidance and reduced criminal penalties, which will contribute significantly towards labour welfare.

The National Logistics Summit 3.0, themed 'Driving Export Growth: Green, Smart & Sustainable Logistics for a Competitive India', spotlighted transformative government reforms and industry strides to slash logistics costs, boost efficiency, and power economic growth.

Anil Syal, president, Safexpress Private Limited, highlighted that the market has grown from $120 billion a decade ago to $260 billion today, and is about to touch $350 billion soon, fuelled by formalisation and technologies like ULIP for shipment visibility and blockchain in e-way bills.

"India has offered itself as a stable hub of resilient supply chain capabilities along with improving current account deficits," he noted.

Samuel Praveen Kumar, Director (Marketing & Capacity Planning), Central Warehousing Corporation, underscored the importance of TAG (Technology, Automation & Innovation, and Green energy) to make the logistics sector more efficient and cost-effective.

He advocated for an integrated Digital Public Infrastructure (DPI) for logistics.

"Let us tag our logistics sector with green energy, clean energy, automation, innovation and technology ," Kumar said.

Sagar Kadu, Director (Logistics Division), Department for Promotion of Industry and Internal Trade (DPIIT), cited a recent study estimating logistics costs at 7.9% of GDP and added that the cost is lower for big firms but higher for MSMEs.

He outlined focus areas like city logistics plans for 20 cities, ULIP's 44 integrations for MSME digitization, and maritime funds for shipbuilding.

"For the government of India, our focus is towards supporting MSMEs, with the aid to bridge the gaps," Kadu said, adding that the government is working towards multimodal integration as part of measures towards formalising the informal sectors.

Naveen Seth, Deputy Secretary General, PHDCCI, emphasised that reducing logistic costs, embracing digital and smart solutions and transitioning towards environmentally responsible supply chains are no longer choices; they are strategic imperatives for enhancing export competitiveness and achieving long-term growth.

The summit underscored collaborative momentum toward 10 million new logistics jobs by 2027, aligning labour reforms with green, tech-driven supply chains for export-led growth.