New labour codes to boost consumption by Rs 75k. cr: SBI report, Pg17

Key Highlights:

• New labour codes, implemented from November 21, are projected to boost consumption by Rs 75,000 crore.
• The codes are expected to increase the share of the formal workforce by at least 15 percent.
• Social security coverage is predicted to rise to 85 percent within the next three years.
• Economists anticipate a 1.3 percent reduction in the unemployment rate over the medium term.

Detailed Insights:

• The implementation of the labour codes is expected to increase consumption by Rs 66 per person per day.
• Approximately 44 crore people are currently working in the unorganised sector, with around 31 crore registered under the e-Shram portal.
• A projected 20 percent shift from informal to formal payrolls could benefit about 10 crore beneficiaries.
• The new codes aim to empower both workers and enterprises, fostering a protected and productive workforce.

Key Concepts Involved:

• Labour Codes: Comprehensive laws regulating employment and working conditions.
• Formal Workforce: Employees with defined contracts, benefits, and social security.
• Unorganised Sector: Economic activities lacking formal regulations and worker protections.
• Social Security: Measures providing income and support during unemployment, illness, or old age.