Praxeology: My Reflexions on India

Indian businesses, especially the so-called ‘too big to fail’ ones, are drowning in debt and are failing one after another. Here is a list of few of these businesses: First, the   IL&FS   default and insolvency. Also,   DHLF , another giant housing finance company, is also near default. Second, Baba Ramdev’s   Patanjali   is struggling hard with slower sales and falling revenues. The major reason behind Ramdev’s fall is,   Patanjali also suffered, like many others, from Modi’s 2016 ban on high-denomination banknotes and 2017 introduction of a new goods and services tax. The moves disrupted economic activity . Third, India’s second biggest private airline company   Jet Airways   has gone belly up after around 40 years of successful business. It couldn’t service its debt. Fourth, the Birla family owned   Yash Birla Group   has defaulted on its debt payment. Its owner Yashovardhan Birla is now declared a ‘willful defaulter’ by UCO bank. And then the big one,   Anil Ambani

In his second term, the Narendra Modi government is going to carry out some   major labor reforms . These reforms aim to consolidate myriad of different labor legislation under four major labor codes. These codes are as following, The first Code talks about minimum wages for every worker, unorganised, and contract labourers in the organised sector. The second one on industrial relations aims at changing the rules binding labour unions, handling labour disputes, terms of employment, lay off, retrenchment policies etc. The third, social security and welfare expands the scope of the coverage of Employees State Insurance (ESI) to every worker, irrespective of the size of the firm. The last one prescribes occupational safety, health and work conditions for Indian labour. If enacted what impact these major changes in the labor legislation will have on the labor market is the question that I am going to answer here. Two of the codes, minimum wage and social security, are at the fi