Textile exporters see higher wage bills, compliance costs

MARGIN FACES CODE THREAT

- NARAYANAN V

INDIA'S TEXTILE AND apparel exporters — already hit by US tariffs — fear that provisions in the new labour codes, recently notified by the Union government, could push up wage bills and compliance costs, further squeezing their wafer-thin margins.

“The directive to treat migrant workers on par with local employees in wages and welfare is well-intentioned but can be financially straining,’ a Tiruppur-based MSME exporter said. “The industry already operates on a wafer-thin margin of 5-10%. Bringing every worker — direct or contract — under full compliance will sharply increase costs and hit small exporters like us.”