Let’s consider the options:
Option A- More Indian workers can get permanent jobs and legal job security if existing labor laws are reformed.
The paragraph states that big firms use temporary workers to avoid laws that are applicable for enterprises with over 100 workers. Thus, only a small percentage of Indian workers have legal job security.
From the above, we cannot however conclude that if labor laws are reformed, more workers can get permanent jobs. There could be other factors influencing whether workers are taken in as temporary or permanent.
Also, the above is not the main idea of the paragraph. Temporary workers are one aspect of the impact of outdated labor laws discussed by the paragraph; it does not summarize the paragraph.
Option B- Effective labor law reform can encourage many Indian businesses to grow to more than 100 workers.
The paragraph does argue that outdated labor laws mean that most businesses stay small to avoid them. So the above is a reasonable conclusion that can be drawn from the paragraph. However, it is not the main idea of the paragraph, and does not summarize it.
Option D- The difficult politics of curbing privileges can be avoided if the changes in the labor law only apply to the new hires
Again, this is stated in the paragraph. However, does it summarize the paragraph? This option only touches upon one aspect of labor law reform suggested. Hence this is not the correct choice of answer.
Option C- Outdated Indian labor laws need to be simplified to provide basic protection to workers and curb privileges.
We can see that this option touches upon the main points of the paragraph- outdated labor laws, need for reform to simplify, basic protection for workers and curbing privileges.
This is hence the option that best summarizes the paragraph.