Contract workers make up 42% of India’s organised manufacturing workforce; the highest since 1997-98, per ASI 2023-24 data. The share, just 20% in 1999-2000, has risen steadily over the past decade after last dipping in 2013-14.
Economists attribute the increase partly to India’s legacy labour regulations, such as the Industrial Disputes Act, 1947, which impose additional compliance requirements and costs on firms employing more than 100 workers
The government has taken steps to encourage formal job creation, including the recently cleared Employment-Linked Incentives (ELI) scheme.
11/09/2025