iGlobal Law

Core Facts

• Population:  1.34 billion
• GDP:  USD 2.09 trillion
• GDP per head:  USD 1,752
• Workforce:  Over 400M
• Unemployment (2017):  4.9%
• Average high skilled monthly wages (2017):  USD 776

Regulatory

• Government debt:  69.5% of GDP
• Personal income tax:  35.54%
• Corporation tax:  34.61%
• World corruption ranking 2016:  79th Transparency International
• Ease of doing business ranking:  130th Business Freedom Index
• Labour law:  ILO Conventions ratified
• Data protection:  Not recognised by EU as having adequate protection

India has the second largest labour force in the world with close to 500 million people. It is projected to become the world’s largest labour force by 2050. It also has one of the world’s youngest labour forces with an average age of 28 (compared to 37.6 in China).

From a labour law perspective, India is one of the most regulated environments outside of Europe. The global business will need to understand the complexities of managing labour relations in India which can be an intricate combination of legal requirements and what is normal from a cultural and local custom perspective. There is also a strong emphasis on loyalty and the way an employer treats its employees, as well as careful scrutiny and comparison of basic terms and conditions within the labour market.