A senior Supreme Court judge has ignited a fresh debate on labour relations by blaming entrenched trade unionism for shuttered factories and stalled industrial expansion, arguing that adversarial labour practices have weighed on productivity even as worker exploitation remains a concern that can be addressed through legal means.Justice Surya Kant, speaking on Thursday at a public forum on economic reform and labour relations, said that a significant number of industrial units across the country had shut down due to what he described as obstructionist trade union practices. He questioned the long-term impact of politically aligned unions on manufacturing growth, investment sentiment and job creation.
Unions seen as brake on industry, he said, adding that many traditional industries had struggled or closed because of prolonged disputes, work stoppages and resistance to operational changes. “How many industrial units in the country have been closed thanks to trade unions? Let us know the realities,” Justice Kant said, according to those present at the event. He argued that sections of union leadership had opposed modernisation and productivity-linked reforms, contributing to industrial decline in several regions.
The remarks, delivered in candid terms, immediately drew attention because they came from a sitting judge of the apex court, though Justice Kant was careful to note that he was speaking in a personal capacity at a public discussion rather than from the bench. He acknowledged that labour exploitation persists in parts of the economy but maintained that existing legal and institutional mechanisms were available to address such abuses without paralysing industrial activity.
“Of course, exploitation is there, but there are means to address exploitation,” he said, suggesting that labour courts, regulatory oversight and collective bargaining frameworks could protect workers’ rights without resorting to tactics that deter investment or disrupt production.
The comments land amid renewed policy focus on manufacturing-led growth, with governments seeking to attract domestic and overseas capital into sectors such as electronics, defence manufacturing, renewable energy equipment and logistics. Over the past decade, labour laws have been consolidated into four labour codes covering wages, industrial relations, social security and occupational safety, a move aimed at simplifying compliance while balancing worker protections.
Supporters of labour reform argue that rigid union structures and frequent strikes have historically discouraged investors, particularly in labour-intensive industries. Several economists note that states with fewer work stoppages and more flexible labour practices have tended to attract larger manufacturing projects, while regions marked by prolonged union militancy have seen capital migrate elsewhere.
Trade unions, however, strongly contest the narrative that they are primarily responsible for industrial decline. Union leaders point to factors such as policy uncertainty, infrastructure gaps, global competition, technological disruption and management failures as major contributors to factory closures. They argue that unions often step in to protect workers from arbitrary layoffs, unsafe conditions and wage suppression, especially in traditional sectors facing competitive pressure.
Labour scholars also caution against broad generalisations. While acknowledging that confrontational unionism has, at times, resulted in costly disruptions, they note that cooperative labour–management models in several industries have delivered productivity gains alongside improved wages and working conditions. The challenge, they argue, lies in reforming outdated practices without diluting fundamental labour rights.
Justice Kant’s remarks reflect a wider tension in economic policymaking between the push for competitiveness and the imperative of social justice. Manufacturing contributes a smaller share to gross domestic product than policymakers desire, and job creation has not kept pace with the growing workforce. Against this backdrop, labour relations have become a focal point of debate, with industry bodies pressing for predictability and unions warning against a race to the bottom.