January 2026

Tulu as official language

• ‘Govt. favourable to declaring Tulu as official language’

Context: The State government is in favour of declaring Tulu as Karnataka’s second official language and said a decision would be taken after studying the models adopted by West Bengal and Andhra Pradesh, Kannada and Culture Minister Shivaraj Tangadagi informed the Legislative Assembly.

• Replying to a question by Congress member Ashok Rai, the Minister said an official team had visited West Bengal and Andhra Pradesh to study the second official language models followed in those States. However, the team is yet to submit its report.
• Once received, a meeting will be convened with Chief Minister Siddaramaiah to take a decision, he said. Andhra Pradesh has declared Urdu as its second official language, he added. Members cutting across party lines from Dakshina Kannada and Udupi districts urged the government to declare Tulu as the second official language of the State.
• Pointing out that Tulu academies have been established and universities are offering courses in the language, Mr. Rai, who represents Puttur, said the State should accord official status to Tulu. Intervening, Speaker U.T. Khader also supported the demand and said the government should seriously consider the proposal.
• Mr. Rai said Tulu has a history of over 3,000 years, has its own script, and is included in Google Translate. He added that the language is being researched by foreign universities.
• The previous BJP government in 2023 had constituted a committee headed by educationist Mohan Alva, which recommended that Tulu could be declared the State’s second official language under Article 345 of the Constitution. The committee had also suggested forming a panel to study the practices followed by other States.
• BJP member D. Vedavyasa Kamath demanded an early decision on declaring Tulu as an official language.
• The House witnessed lighter moments when Mr. Khader and other members from the region interacted in Tulu for a brief while. “I don’t know what abuse Mr. Kamath showered upon me in Tulu,” Mr. Tangadagi remarked.
• Responding, Mr. Khader said, “Don’t worry. When Tulu people express praise or abuse, it is with love and affection.”
• Immediately, Deputy Speaker Rudrappa Manappa Lamani demanded the official language status to the Lambani language.

India’s Labour Codes

Future of work: India’s youth under the new Codes

Context: The four Labour Codes aim to promote formalisation of employment and improve ease of doing business; gap in coverage of benefits is a major challenge.

• India’s Labour Codes came into force in November 2025, marking the most significant labour law reform since Independence. By consolidating 29 central laws into four Codes, the reform aims to simplify compliance, universalise minimum wages, expand social protection, and modernise workplace regulation. Policy debates often portray the Codes as a balancing act between labour flexibility and worker protection.
• Prior to the consolidation, India’s labour regime was fragmented across multiple Central and State laws governing wages, industrial relations, social security, and working conditions. With labour on the Concurrent List, this resulted in uneven enforcement and wide inter-State variation. Crucially, most protections applied only to the formal sector, leaving informal, contract, and casual workers, who form the bulk of the workforce, outside the scope of regulation. Against this backdrop, the government introduced four Labour Codes between 2019 and 2020.
• In 2024, India’s median age was under 30, compared to around 40 in China and 50 in Japan. With nearly half the population still young, understanding how these changes affect youth employment is critical.
• Despite its demographic advantage, India faces a pronounced youth employment crisis. According to the Periodic Labour Force Survey (PLFS) 2023-24, labour force participation among those aged 15-29 stood at 46.5%, far below the 76.4% observed among those aged 30-59. Youth unemployment is 10.2%, compared to less than 1% for older adults.

• Gender disparities further widen these gaps. Only 28.8% of young women participate in the labour force, compared to 63.5% of young men. In urban areas, unemployment among young women reached 20.1%.
• Across all PLFS rounds, young workers are more likely than adults to be unpaid family workers within self-employment. They are disproportionately concentrated in informal employment. In 2023-24, nearly 90% of young workers were informally employed. Even within regular salaried jobs, 60.5% of young regular workers lacked social security, compared to 50.5% among workers above 30.
• Contractual insecurity is also higher among youth. In 2023-24, 66.1% of young regular workers had no written contract, versus 53.6% for older ones. Only 16.5% of young workers had long-term contracts exceeding three years, compared to 35.4% among adults.
• Young workers are also overrepresented in platform-based gig work. A NITI Aayog estimate suggests that 77 lakh workers were engaged in the gig economy in 2020-21, a figure projected to rise to 2.35 crore by 2029-30.
• Against this backdrop, the new Labour Codes aim to promote formalisation while improving the ease of doing business. The introduction of a statutory national floor wage could raise earnings for young workers clustered in low-paid, entry-level jobs. If firms increasingly rely on fixed-term contracts, the Codes mandate parity in wages and benefits with permanent workers.
• The requirement of appointment letters for all workers and guaranteed wage payments, even during leave, strengthens baseline employment security. The Code on Social Security extends welfare schemes covering health, maternity, disability, education, and skill development to unorganised workers. Gig and platform workers are explicitly recognised in national law, with provisions for registration from age 16 and the creation of National and State Social Security Boards. Unlike the earlier Unorganised Workers’ Social Security Act (2008), which had limited impact, the new Code offers clearer institutional mechanisms.
• Labour market transparency is also enhanced through mandatory vacancy reporting to career centres. The Industrial Relations Code further affects youth employment by reducing hiring frictions through a higher retrenchment threshold. It provides legal clarity for contract labour and fixed-term employment categories dominated by young workers while extending benefits such as leave, health cover, social security, and gratuity to fixed-term employees after just one year of service.
• However, several challenges remain. Many provisions for unorganised and gig workers mirror those under the 2008 Act, including a size-based definition of enterprises with fewer than 10 workers. PLFS 2023-24 shows that 42.7% of young workers lack written contracts, and nearly one-fifth of them work in enterprises with more than 10 workers, leaving significant gaps in coverage. Discretionary language in provisions for gig workers and weak statistical definitions of digital platform employment complicate coverage, especially given widespread multiple job-holding. Despite the Second National Commission on Labour having urged the government as early as 2002 to modernise labour protections in response to technological change and evolving work arrangements, two decades later, policy follow-through and statistical innovation have been slow.

• These gaps point to an urgent need for stronger labour data systems and proactive worker registration. Identifying gig and platform workers in national surveys, instead of subsuming them under broad self-employment categories, would strengthen policy design and protection.

Karnataka forms gig workers’ welfare development board

Context: According to the notification, the Labour Minister will be the ex-officio president of the board.

• The Karnataka government on Tuesday issued a notification constituting the Karnataka Platform-Based Gig Workers’ Welfare Development Board under the Karnataka Platform-Based Gig Workers’ (Social Security and Welfare Development) Act, 2025.
• According to the notification, the Labour Minister will be the ex-officio president of the board. Senior officials from the Labour Department, the Department of Information Technology and the Commercial Taxes Department have been included as ex-officio members. The Chief Executive Officer of the board will function as the member-secretary.
• The board includes four representatives of gig workers from unions representing food delivery and app-based transport workers, and four representatives from aggregator platforms. Representatives from Porter, Zomato, Uber and Amazon have been named as aggregator members. The committee also includes labour unions, including United Food Delivery Partners Union, the Indian Federation of App Based Transport Workers, All India Trader Union Congress (AITUC), and Ola Uber Drivers and Owners’ Association.
• The constitution of the board follows the State government’s decision to move ahead with the implementation of welfare measures for gig workers through a dedicated statutory body. Now, both aggregator platforms and gig workers will be required to register with the board.
• Aggregators will have 45 days to complete their registration and furnish details of all gig workers engaged through their platforms. Each registered gig worker will be issued a unique identification number, which will be used by the board to disburse social security benefits. The welfare fund will comprise the welfare fee collected from aggregators, contributions made by gig workers, and grants provided by the State and Central governments.
• The State has decided to levy a welfare fee of 1% to 1.5%, with a cap, on aggregator platforms, with the rate varying across sectors and business models. Labour Minister Santosh Lad had said the levy was kept low initially to ensure a steady welfare fund for gig workers without placing an immediate financial burden on platforms.
• Officials had also said that once contributions begin to flow into the welfare fund, the board will assess whether the collections are sufficient to extend social security benefits to gig workers. The welfare fee may be revised, up to a maximum of 5%, if the funds are found to be inadequate.

India and EU finalized Free Trade Agreement

Context: European wines, luxury cars to become cheaper as negotiations, launched in 2007, conclude.

• Modi calls it historic pact, while Ursula says it will reduce strategic dependence amid global turmoil.
• Officials say document will undergo legal scrubbing before it can be ratified by European Parliament
• After almost two decades of negotiation, India and the European Union (EU) finalised a free trade agreement (FTA) on Tuesday billed as the “mother of all deals”, that will see the EU drop tariffs on 99.5% of Indian exports to the 27-nation bloc.
• India has given tariff concessions on 97.5% of imports from the EU, with European wines and luxury cars set to become less expensive here as a result.
• Beyond the economics, both sides stressed the geopolitical significance of a deal between two economies that together account for a third of global trade in the shadow of uncertainty sparked by the U.S. tariff regime.
• Prime Minister Narendra Modi declared that the partnership would “strengthen stability” at a time of global turmoil, while European Commission President Ursula von der Leyen said it would reduce strategic dependency at a time when global trade is increasingly fractious.
• “We have delivered the mother of all deals,” she said. “Two giants who choose partnership, in a true win-win fashion. A strong message that cooperation is the best answer to global challenges.”

‘Largest-ever FTA’

• Noting that this is India’s largest-ever FTA, Mr. Modi said: “This historic agreement will facilitate access to the European market for our farmers and small industries, create new opportunities in manufacturing, and strengthen cooperation in our services sectors.”
• Both sides, however, made sure to exclude their respective sensitive sectors. India’s strategic agricultural and dairy sectors remain protected, while the EU will maintain its current tariffs on beef, sugar, rice, chicken meat, milk powder, honey, bananas, soft wheat, garlic, and ethanol.
• India-EU FTA talks were first launched in 2007. Following several hiccups and pauses, they were resumed in 2022 with both sides agreeing to exclude issues on which agreement had been elusive.
• According to Commerce Ministry officials, the language in the document will first be cleaned up over the next 10 to 15 days, following which it will undergo “legal scrubbing”. It will then have to be translated and sent to all 27 EU member states, before it can be ratified by the European Parliament.
• “We do hope that we should be able to celebrate the entry into force of this agreement within calendar 2026 itself,” said Union Minister Piyush Goyal.
• According to the Commerce Ministry, India has gained tariff reductions across 97% of tariff lines, covering 99.5% of trade value. Of this, 90.7% of India’s exports will see duties eliminated entirely on the first day of the deal’s implementation, including labour-intensive sectors such as textiles, apparel, leather, footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and certain marine products, amongst others.
• Another 2.9% of India’s exports will see duty elimination over three to five years.
• This would include certain marine products, processed food items, and arms and ammunition. Over and above this, 6% of India’s exports will see tariff reductions including certain poultry products, preserved vegetables, bakery products, amongst others.
• “Key labour-intensive sectors comprising more than ₹2.87 lakh crore [$33 billion] of exports that are currently subjected to import duty between 4% to 26% in the EU and are crucial for employment generation, will enter zero duty from entry into force of the FTA and thus gain enhanced competitiveness in the EU market,” the Ministry said in a release.
• In particular, of the sectors that India primarily exports to the EU, the following will see duties eliminated entirely: marine products (current duties of up to 26%), chemicals (12.8% currently), plastic and rubber items (6.5%), leather footwear (17%), textiles and apparel (12% each), base metals (10%), gems and jewellery (4%), furniture and allied consumer goods (10.5%), and toys and sports goods (4.7%).
• On services, the EU has agreed to commitments across 144 services sub sectors, including IT/ITeS, professional services, education, and other business services.

What India has conceded

• Overall, India is offering duty elimination and reductions on 92.1% of the tariff lines, which comprises 97.5% of the EU exports to India. Within this, 49.6% of the tariff lines will see an immediate duty elimination once the agreement comes into effect.
• Another 39.5% of the tariff lines will be subject to a phased elimination of tariffs over five, seven, and 10 years. An additional 3% of products will see phased tariff reductions.
• “Imports of EU’s high technology goods are expected to diversify India’s import sources, thereby reducing input costs for businesses, benefit consumers and will create opportunities for Indian businesses to integrate into global supply chains,” the statement added.
• Notably for the EU, the following European sectors will see duty-free access to the Indian markets: machinery and electrical equipment, aircraft and spacecraft, optical, medical and surgical equipment, plastics, precious stones and metals, chemicals, motor vehicles, iron and steel, pharmaceuticals, and various agricultural products.
• On services, India has agreed to open up 102 sub sectors covering EU priorities such as professional, business, telecommunications, maritime, financial, and environmental services.
• It has been learnt that negotiations over a few sectors such as automobiles and wine had caused some problems, but the two sides agreed to quota based systems that were satisfactory to both sides.