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Will new labour rules shift the trajectory of India's textile sector?

27 Nov '25
4 min read
 Will new labour rules shift the trajectory of India's textile sector?
Pic: Shutterstock/PradeepGaurs

Insights

  • Four new labour codes came into force on November 21, 2025, consolidating 29 laws to simplify compliance and reshape industrial relations.
  • Reforms are expected to enhance India's global credibility and export potential, even as some stakeholders anticipate a mixed impact on the garment industry, which is largely comprised of micro and small units.

In a landmark move, the Government of India announced that four Labour Codes—the Code on Wages, ****; the Industrial Relations Code, ****; the Code on Social Security, ****; and the Occupational Safety, Health, and Working Conditions Code, ****—came into effect on November **, ****.

These will subsume and harmonise ** existing central labour laws into a streamlined regulatory framework aimed at improving clarity, compliance, and ease of doing business.

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