India’s newly implemented labour codes will give the country’s export industries a stronger and more predictable operating environment, a commerce ministry official said. According to the official quoted by news agency PTI, the reforms bring flexibility and simplification for businesses while ensuring fair wages, safety, equality and social security for workers.The Centre enforced the four labour codes on Friday, ending a delay since 2020. The new framework introduces timely minimum wages for all workers, universal social security that covers gig and platform workers, longer permissible work hours, wider use of fixed-term employment, and more flexible restructuring and retrenchment rules.The commerce ministry official said each provision plays a direct role in strengthening India’s export ecosystem. A single definition of “wages” across all codes removes the confusion created by multiple earlier definitions, the official noted, adding that exporters working across states will find payroll and compliance processes simpler and more uniform for contributions such as gratuity, bonus and social security.The official was cited by PTI as saying that a national floor wage and minimum wage rationalisation will help export firms plan labour costs more predictably. The official added that banning gender-based discrimination in hiring and wages aligns Indian manufacturing with international labour standards often required by global retailers and sourcing partners.Allowing women to work night shifts—with consent and proper safety measures—will support export sectors such as apparel, electronics and IT-enabled services that run round-the-clock production to meet overseas orders, the official said. Raising the threshold for government approval for retrenchment, lay-offs or closure from 100 to 300 workers also gives exporters more flexibility to respond to shifting global demand.The commerce ministry further said that digital documentation under the codes improves traceability and credibility for exporters frequently audited by foreign buyers. Plantation workers’ rights have also been consolidated and made portable, according to PTI.The four codes replace 29 earlier labour laws and extend protections to fixed-term, contract, gig and platform workers, while mandating appointment letters, equal pay for women and portability of benefits. Additional reforms include a national floor wage, faster dispute resolution and single-window licensing.India has nearly 2 lakh exporting units employing over 50 million people. The country’s goods and services exports hit a record $825 billion in 2024-25.
About the Author
