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State regulation characterized management of both product market and the industrial relations system (IRS) in the post-Independent India. The logic of industrial peace determined the institutional framework of the IRS in the era of regulation. Over the years, the failures of state regulation model concerning both the product market in the industrial sector and the IRS were pointed out and there have been calls for liberalizing both. The process of economic liberalization began since the mid- 1980s and accelerated since 1991. Meanwhile, some important developments were taking place in the industrial relations system as well. The State, the employers and the trade unions responded to these forces in different ways. These taken together affected the employment relations in significant ways. The paper seeks to identify these important changes in employment relations in the post-reform period.
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