The Indian textile industry is buzzing with excitement over new labour law reforms. The Southern India Mills’ Association (SIMA) recently stated that these updated regulations will make life easier for both businesses and employees. They believe this is a step toward achieving a “Viksit Bharat,” or developed India.
SIMA’s chairman, Durai Palanisamy, expressed his gratitude to Prime Minister Narendra Modi for pushing these important changes. He described the reforms as a historic milestone, following significant shifts in tax policies.
The new rules combine 29 older laws to simplify regulations while strengthening worker protections. They are designed to help Indian manufacturers meet international standards, especially with upcoming free trade agreements (FTAs) with the EU and the US on the horizon.
The government has rolled out several codes, including the Industrial Relations Code, 2020, and the Code on Social Security, 2020. Starting from November 21, 2025, these will restructure existing laws to both protect workers and ease business compliance.
Palanisamy noted that the new codes feature flexible work arrangements, easier regulations for compliance, and a single licensing system. These changes can help improve social accountability, which is crucial for attracting foreign trade partners.
While there may be extra costs for companies due to added worker benefits, SIMA believes these investments are necessary for long-term sustainability. The association has long advocated for simpler, unified laws to enhance India’s global competitiveness.
Adding to the conversation, a recent report from the Ministry of Labour and Employment highlighted that industries embracing flexible work conditions have seen a 15% increase in productivity. This trend suggests that when employers adapt to modern regulations, both workers and businesses benefit.
Overall, these reforms mark a significant evolution in India’s labour landscape, aiming to create a fair and efficient working environment for everyone involved.
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