India: Labor freedom

For that indicator, we provide data for India from 2005 to 2022. The average value for India during that period was 57 points with a minimum of 41 points in 2020 and a maximum of 74 points in 2012. The latest value from 2022 is 58 points. For comparison, the world average in 2022 based on 175 countries is 56 points. See the global rankings for that indicator or use the country comparator to compare trends over time.

The Labor Freedom index for India from the Heritage Foundation reflects the various aspects of the legal and regulatory framework of the labor market in India, including the minimum wage; laws inhibiting layoffs; severance requirements; and the regulatory burdens on hiring.

Definition: The Labor freedom index is composed of six quantitative factors: ratio of minimum wage to the average value added per worker, hindrance to hiring additional workers, rigidity of hours, difficulty of firing redundant employees, legally mandated notice period, and mandatory severance pay. The index is based on data collected in connection with the World Bank’s Doing Business study.