New Labour Codes Expected To Reduce Compliance Overlaps, Tackle Informal Employment: CITI

New Delhi, Nov 26 (KNN) The Confederation of Indian Textile Industry (CITI) has welcomed the implementation of the new Labour Codes, describing the reforms as a significant step toward modernising India’s labour framework. 

In a statement, CITI Chairman Ashwin Chandran said the unified codes are expected to reduce redundancies in the previous regulatory structure and help curb informality in employment, which he attributed to earlier legal inflexibilities. 

He added that the industry hopes the new rules will address variations across state-level regulations that have long complicated compliance for companies operating in multiple jurisdictions.

According to CITI, liberal and industry-friendly employment rules will be crucial for attracting investment, particularly in the context of initiatives such as the PM MITRA parks and ongoing sectoral policy reforms. 

Chandran also expressed optimism that the codes would complement India’s efforts to position itself as a responsible global manufacturing hub aligned with emerging reporting and compliance frameworks.

The industry body reiterated its expectation that concerns over overtime wage rates—currently higher than International Labour Organisation norms—will be reviewed. 

It further called for continued simplification of procedures, lower compliance costs, and greater alignment with international labour standards.

CITI said such measures would support the expansion of the organised textile sector, encourage formal employment, and strengthen the industry’s overall growth trajectory.

(KNN Bureau)