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India's long-delayed labor reform rollout leaves investors in limbo

States' legislative autonomy stalls a centerpiece of Modinomics

Investors are eagerly waiting for labor reform promised as part of Modinomics.   © Reuters

TOKYO -- Two years after India's parliament passed legislation aimed at streamlining India's labor laws, the changes have yet to take effect due to resistance from certain states, raising questions about the fate of regulations that have hindered the growth of startups.

The rollout of the four labor codes has been pushed back numerous times. Just this summer, there had been word from sources close to the government that implementation would begin July 1. But local media reported in late June that it had been delayed again, with no new time frame given.

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