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Labour and Labour Welfare sub-sector consists of six main programmes viz.

Fiscal stabilisation has resulted in drastic reduction in budgetary support to the public sector commercial enterprises while exposing these enterprises to increased competition from private sector. Economic reforms, by removing barriers to entry, have created competitive markets. The new economic policy has directly affected industrial relations in the country, because the government has to play a dual role, one of protecting the interest of the workers, and second to allow a free interplay of the market forces. The workers have opposed economic liberalisation policy for fear of unemployment while entrepreneurs have welcomed it in the hope of new opportunities to improve Indian industries.

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�� In the early 1990s, the process of economic reforms was set in motion when the government introduced a series of measures to reduce control on industries, particularly large industries. The payment of bonus act was passed in 1965. Several legislations, including the following, were enacted to maintain industrial peace and harmony: Factories Act, 1948, Employees State Insurance Act, 1948 and Minimum Wages Act, 1948. �� Soon after independence, the government at a tripartite conference in December 1947 adopted the industrial truce resolution. These legislations have also provided machinery for bipartite and tripartite consultations for settlement of disputes. After independence, labour legislations have formed the basis for industrial relations and social security. There were hardly any labour welfare schemes. “During the pre-independence period, industrial relations policy of the British Government was one of laissez faire and also of selective intervention.