The growth rate in India has been at about 7-8 % in the recent years. However, data and facts show that Indian growth was jobless and not inclusive. The reason for less jobs was due to stagnant manufacturing output and contraction of labour-intensive segment of the formal manufacturing sector. This is due to excessive rigidity in the manufacturing labour market and rigid labour regulations has created disincentives for employers to create jobs. According to World Bank study Industrial Disputes Act has lowered employment in organised manufacturing by about 25%.