CMAI Reaction: The Impact of Labour Codes of Garment Industry.

Mumbai, Maharashtra, 24th of November 2025 : “The newly introduced Labour Codes will have a mixed impact on the Garment Industry, which consists largely of Micro and Small units. On one hand, it will be beneficial to these units typically employing less than 300 workers, as they will not need prior Government permission for lay-offs and retrenchments. On the other hand, restriction of using contract labour for ‘core’ activities will affect these units as most employ labour on contract or piece rate basis especially for stitching, checking, and finishing. For labour, this is a positive move as it will increase formalization and safety net.”

Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI)