The implementation of the new labour codes will significantly strengthen India’s export ecosystem by creating a more flexible, simplified and predictable regulatory environment—factors that are crucial for competing in volatile global markets and meeting international compliance standards, a commerce ministry official said on Saturday.
According to the official, the same set of provisions also ensures fair wages, social security, workplace safety, equality, opportunities for upskilling and dignity for workers.
On Friday, the government finally implemented the four labour codes that had been pending since 2020. The move introduces several worker-centric reforms—such as timely minimum wages applicable to all and universal social security coverage, including for gig and platform workers—while also enabling longer working hours, expanding fixed-term employment and easing certain retrenchment rules for employers.
The commerce ministry official explained that each provision in the codes plays a unique but interconnected role in enhancing the country’s export competitiveness.
"For export-oriented industries, the codes provide flexibility, simplification, and predictability essential to compete in volatile global markets while meeting international compliance expectations," the official said.
A uniform definition of "wages" across all labour codes, the official noted, removes long-standing confusion caused by multiple and inconsistent definitions in earlier laws. For export-focused firms operating across various states, this standardisation eases payroll management and ensures consistency in wage calculations for social security contributions, bonuses and gratuity.
Similarly, the introduction of a national floor wage and the rationalisation of minimum wages provide predictability for labour cost structures across states, eliminating regional disparities for industries with multi-state operations.
"The prohibition of gender-based discrimination in recruitment and wages ensures equal remuneration for equal work. For export industries, this aligns domestic practices with international labour and human rights standards, particularly those demanded by global retail and sourcing partners," the official said.
The provision permitting women to work night shifts—subject to their consent and adequate safety measures—adds another layer of flexibility for export sectors that operate continuous production cycles to meet global demand.
Industries such as apparel, electronics and IT-enabled services can now legally deploy women during late hours, provided proper transport, security and welfare arrangements are in place, the official added.
Raising the threshold for government approval for lay-offs, retrenchment or closure from 100 to 300 workers is also expected to boost operational flexibility.
"This provision gives exporters the confidence to expand employment during peak demand periods without the fear of excessive rigidity during downturns," the official said, adding that export-oriented industries—regularly audited by international clients and certification bodies—also benefit from transparent, digitally traceable documentation.
The labour codes have additionally consolidated, expanded and made portable the rights of plantation workers.
India currently has about 2 lakh exporting units employing more than 50 million workers. In 2024–25, the country’s goods and services exports reached a record USD 825 billion.
