Garment exporters in India say raising the minimum wages for contract labour to Rs 10,000 could result in a sharp drop in exports and lower employment. They say that with the proposed increase in wages, the industry will not be able to exercise its flexibility of engaging more labor to meet its peak-time requirements and will lose to competitors in Bangladesh and China, who already have a cost advantage.
The industry witnesses peak demand between October and February, while orders decline by around 30 per cent in other seasons.
According to exporters the higher wage burden could lead to a 10 per cent decline in export turnover and a proportionate decline in employment. The higher contract wages would also lead to a violation of wage parity norms (vis-à-vis workers on the rolls of a company) and lead to unrest in the industry.
The proposed wage hike is an effort to check exploitation of labor employed by the industry on a contract basis. If the provision is uniformly implemented across all states, the result will be an over 90 per cent increase in wages for contract labor in states such as Orissa and Rajasthan and over 30 per cent in most other states.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Global cotton enters a deficit year in 2026 as supply drop meets logistics risk
The global cotton economy has entered a fragile and sensitive phase. Early projections for the 2026-27 season suggest that world... Read more
India’s textile trade gets a Pacific push as New Zealand FTA removes tariff barr…
India and New Zealand have inked a ‘once-in-a-generation’ Free Trade Agreement (FTA), one that will have a profound impact on... Read more
Lululemon’s world-first nylon circularity push signals a new apparel arms race
The global apparel industry’s circularity narrative is entering a more technically demanding phase. Polyester recycling once the flagship of sustainable... Read more
Beyond the DTC Rush: Levi’s hybrid channel strategy sets a new retail benchmark
The global apparel sector is entering a phase where channel strategy is no longer a tactical lever but a core... Read more
The New Rules of Resale: EPR turning secondhand into fashion’s strategic growth …
The global fashion industry is facing a decisive regulatory and commercial reset. What began as a sustainability narrative around reuse... Read more
The 2027 Mandate: Why denim’s future hinges on verifiable data
For decades, the global denim industry has relied on a narrative of durability, heritage, and authenticity. That narrative is now... Read more
Europe’s textile core unravels as costs, imports and policy pressure bite
Europe’s textile and apparel sector, long seen as a benchmark for craftsmanship and industrial depth, is slipping into a prolonged... Read more
Automation, innovation, regulation are the forces shaping textiles in 2026
The global textile sector has entered a new era. Early 2026 saw the industry breach a $1.06 trillion valuation, reflecting... Read more
The new Brussels rulebook, every EU apparel order is now a balance-sheet risk
The humble export order sheet is undergoing a transformation. What was once a straightforward commercial instrument: SKU, volume, FOB price,... Read more
Why 2026-27 could be a defining cotton year for India’s farm-to-fashion economy
The global cotton economy is entering a more constrained phase, and for India, the implications run far beyond the farm... Read more












