MAINS Current Affairs includes Declining Fertility Rate in India & Four Labour Codes in India: Implementation Complete, But Workers Still Vulnerable

Governance

1. Declining Fertility Rate in India

Context: India, which historically focused on population control, is now witnessing a demographic transition as its Total Fertility Rate (TFR) has declined to 1.9, below the replacement level of 2.1.

What is Total Fertility Rate (TFR)?

• Total Fertility Rate refers to the average number of children a woman is expected to have during her reproductive age (15–49 years).
• The replacement fertility rate (2.1) is the level required to maintain a stable population size from one generation to another without migration.

TFR Trends in India (SRS Statistical Report 2024)

• Decline Below Replacement Level

• India’s TFR has fallen below the replacement level, reflecting declining population growth.
  • Regional Variations
• Only Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, and Chhattisgarh recorded TFR above 2.1 in 2024.
  • Lowest Fertility States
• Delhi recorded the lowest TFR at 2, followed by Tamil Nadu, Kerala, and West Bengal at 1.3 each.
  • Long-Term Decline
• India’s TFR declined from 3 in 1985 to 1.9 in 2024 and is expected to fall below 1.6 by 2031 if the current trend continues.

Reasons for Declining Fertility Rate in India

• Delayed Marriage and Childbirth

• Rising age of marriage, career priorities, and changing social preferences have resulted in couples delaying childbirth.
  • Rapid Urbanisation
• Higher cost of housing, education, healthcare, childcare, limited living space, and urban lifestyles encourage smaller families.
  • Improved Family Planning
• Better access to contraception and reproductive healthcare services has enabled couples to decide the timing and number of children.
  • Decline in Infant Mortality
• Improved healthcare, immunisation, nutrition, and sanitation have increased child survival rates, reducing the preference for larger families.
  • Rising Cost of Raising Children
• Families increasingly prefer fewer children and invest more in their education, health, and overall quality of life.
  • Demographic Transition
• India is moving towards the later stages of demographic transition marked by low birth rates, low death rates, and slower population growth.

Implications of Declining Fertility Rate

• Population Stabilisation

• Below-replacement fertility will gradually slow population growth, leading to eventual stabilisation and possible decline.
  • Ageing Population
• A lower fertility rate will increase the share of elderly citizens, creating challenges related to healthcare, pensions, social security, and elderly care.
• Countries like Japan and South Korea already face similar ageing-related issues.
  • Labour Force Challenges
• A smaller young population may reduce future workforce availability and affect economic growth unless productivity increases.

Regional Demographic Imbalance

• Different fertility patterns across states may influence:

• • internal migration,
  • labour availability,
  • political representation,
  • resource allocation.

Southern and western states already have much lower fertility rates compared to some northern states.

Government Initiatives

• State-Level Population Policies

• States have started adopting fertility-supportive measures.
  • Andhra Pradesh Population Management Policy (2026) provides incentives for additional children, education support, fertility clinics, and maternal healthcare.
  • Sikkim introduced extended maternity/paternity leave and IVF support.

Jiyo Parsi Scheme

• Provides financial assistance for infertility treatment, childcare support, and awareness programmes to address the declining Parsi population.

National Health Mission (NHM)

• Improves maternal and child healthcare, reduces infant mortality, and supports healthy family formation.

Pradhan Mantri Matru Vandana Yojana (PMMVY)

• Provides maternity benefits and financial assistance to pregnant and lactating women.

Challenges Ahead

• Growing Elderly Dependency

• A shrinking young population may increase pressure on working-age groups to support elderly citizens.
  • Economic Pressure
• Declining workforce growth may impact production, innovation, and long-term economic expansion.
  • Social Changes
• Smaller family structures may increase concerns related to elderly isolation and caregiving.

Way Forward

• Balanced Population Policy

• India should move beyond only population control and focus on managing demographic changes effectively.
  • Strengthen Family Support Systems
• Affordable childcare, parental leave, and flexible working arrangements can help young families.
  • Improve Fertility Healthcare
• Access to infertility treatment, Assisted Reproductive Technologies (ART), and reproductive healthcare should be expanded.
  • Promote Gender Equality
• Equal sharing of childcare responsibilities and supportive workplace policies can improve women’s workforce participation.
  • State-Specific Strategies
• Policies should be designed according to regional fertility trends instead of adopting a single national approach.
  • Invest in Human Capital
• Improving education, healthcare, and skill development will help India maximise benefits from demographic transition.

Conclusion

• India’s declining fertility rate represents a shift from population control challenges towards population management challenges.
• The future approach should focus on creating a supportive environment where families can achieve their desired family size while ensuring economic growth, social security, and demographic balance.

ECONOMY

2. Four Labour Codes in India: Implementation Complete, But Workers Still Vulnerable

Context: India has completed the implementation framework for labour reforms by notifying rules under the four Labour Codes. However, concerns remain regarding worker protection, job security, and effective implementation of safeguards.

About the Four Labour Codes

• The Government consolidated 29 central labour laws into four Labour Codes to simplify labour regulations, reduce complexity, and balance economic growth with labour welfare.
  • Code on Wages, 2019
• Ensures universal minimum wages, wage protection, and timely payment of wages across different sectors.
  • Industrial Relations Code, 2020
• Regulates trade unions, industrial disputes, layoffs, retrenchment, fixed-term employment, and employer-worker relations.
  • Code on Social Security, 2020
• Expands social protection benefits to organised, unorganised, gig, and platform workers.
  • Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020
• Provides common standards for workplace safety, health, welfare facilities, and working conditions.

Objectives of Labour Code Reforms

• Simplification of Labour Laws

• The merger of multiple laws into four codes reduces legal complexity and compliance burden for businesses.
  • Universal Wage Protection
• Minimum wage coverage and timely wage payments are extended to workers across all sectors.
  • Formalisation of Employment
• Recognition of Fixed-Term Employment (FTE) provides flexibility to employers while extending statutory benefits to workers.
  • Expansion of Social Security
• Gig workers, platform workers, migrant labourers, and unorganised workers are included under social security frameworks.
  • Better Workplace Safety
• The OSHWC Code strengthens standards related to health, safety, working conditions, and prevention of workplace hazards.
  • Industrial Harmony
• The Industrial Relations Code aims to improve dispute resolution and strengthen cooperation between employers and workers.

Major Issues and Concerns

• Fixed-Term Employment (FTE) Concerns

• Absence of minimum contract duration and limits on repeated renewals may allow employers to replace permanent jobs with temporary contracts, increasing job insecurity.
  • Unclear Wage Determination
• Lack of clarity between floor wage and minimum wage, absence of transparent criteria, and limited consultation mechanisms create concerns regarding fair wage fixation.
  • Problems with Hourly Wage System
• Hourly employment may not provide stable income, as workers may not find work for remaining hours, especially in gig and informal sectors.
  • Limited Protection for Gig Workers
• Gig and platform workers are still largely considered self-employed, with unclear employer responsibility and uncertain social security contributions from companies.
  • Gratuity Insurance Issues
• Lack of clarity regarding insurance mechanisms, employer responsibilities, and implementation may weaken protection against non-payment of gratuity.
  • Weakening of Trade Union Rights
• Higher recognition requirements may make it difficult for smaller and newer unions to represent workers, reducing collective bargaining power.
  • Contract Labour Concerns
• Unclear definitions of core and non-core activities may increase contract labour in regular jobs, leading to greater informalisation.
  • Reduction of Occupation-Specific Benefits
• Some earlier welfare protections, such as housing and dedicated healthcare facilities for plantation workers, need stronger safeguards.

Way Forward

• Regulate Fixed-Term Employment

• A minimum contract period, limit on renewals, and safeguards against replacing permanent jobs should be introduced.
  • Transparent Wage Framework
• Clear distinction between floor wage and minimum wage with scientific wage calculation methods is needed.
  • Strengthen Gig Worker Protection
• Platform companies should share responsibility through social security contributions, health benefits, insurance, and retirement support.
  • Improve Contract Labour Regulation
• Clear classification of core and non-core activities is required to prevent misuse of contract employment.
  • Strengthen Collective Bargaining
• Trade union participation and worker representation mechanisms should be protected.
  • Implement Gratuity Protection
• Mandatory gratuity insurance and effective grievance redressal systems should be developed.
  • Improve Labour Welfare Enforcement
• Regular inspections, technology-based monitoring, and protection for vulnerable workers should be strengthened.

Conclusion

The four Labour Codes represent a major step towards simplifying India’s labour governance and improving ease of doing business.

However, their success will depend on maintaining a balance between labour market flexibility and worker security through strong implementation, social protection, and inclusive labour reforms.

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