The more India liberalizes, the easier it is for businesses to operate without the constant threat of corrupt government or police.
By removing old foolish labor laws, the state can build newer laws from scratch. Also more economic activity means more jobs. So even if people tend to lose or be unhappy at current jobs, they can find something else.
It was more of a tool for bureaucracy to interfere in the private sector and of course bribery. For instance factories are required by law to provide spittoons, they need to be updated.
And the presence of these laws that force a large number of business from employing full time contracted employees. Perhaps upwards of 70% workers would benefit greatly with simplified and reasonable labour laws.
Even well meaning employers are hindered from providing proper contracts in the past.
Removing laws that protected the employees will only lead to exploitation. Is this the only way to entice investors? Factories with suicide prevention nets is the last thing India needs.
https://theprint.in/india/governance/up-suspends-labour-laws...