Labour Law Reform and Flexibility In India and China

India and China, the two fast growing economies in recent times, offer interesting comparative picture on labour flexibility and labour reforms. The paper seeks to (a) narrate the nature of labour market and industrial relations system (IRS), (b) review labour reform debate, (c) identify the nature and extent of rigidities in labour market and IRS, (d) describe and analyze the labour reform strategies, and (e) compare the reform experiences and draws policy lessons. The labour market and IRS in pre-reform period in both were characterized by rigidities in varying degrees. Labour reforms to introduce flexibility in the system were needed in both. The similarities end here. There exist radical differences in the extent of rigidities in labour market, nature of IRS, the reform strategies, the political management of reforms and their impact between the two. The differences are sought to be explained using political and institutional factors