This move would hopefully pave the way for each state having their own socio-economic background to take decisions to create more jobs within their boundaries.
"We acknowledge this step by the Raje led government towards labour law reforms as a test case for the centre and setting an example for all other 28 states," Indian Staffing Federation President Rituparna Chakraborty said.
India needs flexible labour laws to ensure freedom from unemployment where as many as 12 million are added to the workforce annually, ISF said adding that labour market reforms will undoubtedly bring down the divide between the formal and informal employment.
The changes in the labour laws have triggered a backlash from trade unions.
The move, if approved by the Centre, could result in a domino effect and other states are likely to follow suit.
Prime Minister Narendra Modi, who has tacitly endorsed reforms of archaic labour laws, is unlikely to oppose the changes sought by Rajasthan.