Indian textile industry hails new unified labour codes

The Indian textile industry has welcomed the country’s labour law reforms. The Southern India Mills’ Association (SIMA) stated that the recently announced labour codes will simplify labour regulations, protect the interests of both employers and employees, and support the country’s progress towards Viksit Bharat.

Durai Palanisamy, chairman of SIMA, appreciated Prime Minister Narendra Modi for the bold and path-breaking initiative. He added that the implementation of these labour codes is another historic achievement for the government, marking a milestone in a series of transformational reforms following changes in the taxation regime.

The Indian textile industry, led by SIMA, has welcomed the implementation of new labour codes that rationalise 29 laws and strengthen worker protection while easing business compliance.
Chairman Durai Palanisamy praised the reforms for supporting Viksit Bharat and helping Indian manufacturers meet global accountability standards, especially ahead of FTAs with the EU and US.

The Government of India has notified the Industrial Relations Code, 2020; the Code on Social Security, 2020; the Occupational Safety, Health, and Working Conditions (OSHWC) Code, 2020; and the Code of Wages, 2019. These regulations, effective from November 21, 2025, rationalise 29 existing labour laws.

Palanisamy noted that the new labour codes would help Indian industry comply with social accountability standards prescribed by leading regions such as the European Union and the US. He added that the new policy initiatives would enable the industry to benefit from free trade agreements to be concluded with the EU and the US in the near future.

The new labour codes include provisions such as relaxation in working hours, flexible fixed-term employment, a level playing field in compliance costs, simplification of legislation, ease of doing business, Pan-India certification through a single licence and single registration, mandatory health check-ups for workers, compulsory issuance of appointment letters, incentives for employing more women with enhanced safety during night shifts, and annuity-based gratuity benefits.

SIMA observed that although the cost to companies may increase due to additional welfare provisions for workers under the new labour codes, the interests of workers are well protected.

The Association added that it has been at the forefront of labour-related efforts and has consistently urged the government to simplify outdated labour laws and introduce a unified code that would help India lead globally in social accountability.

Fibre2Fashion News Desk (KUL)