The Foundation for Economic Development (FED) has released a report indicating that India's high minimum wages and double overtime rates are adversely affecting job creation, particularly for low-skilled workers. According to the report, 64% of India's workforce earns below the minimum wage, making it illegal to hire nearly 50% of workers even with a 30% wage increase. The report highlights that India's minimum wage is approximately 50% higher than that of key exporting competitors like China and Vietnam, which hampers competitiveness in export markets. Consequently, labor-intensive industries face an estimated annual export shortfall of $60 billion, leading to significant job losses. The report emphasizes that well-intentioned wage floors are preventing many workers from accessing better job opportunities. To mitigate these issues, the FED suggests allowing workers to negotiate wages freely and recommends the use of wage subsidies instead of increasing minimum wages further. Additionally, it calls for flexibility in the national floor wage to accommodate regional economic differences, which could help stimulate formal job creation across various states.