Gandhinagar, Aug 30 (KNN) The Gujarat Chamber of Commerce & Industry (GCCI) has requested the state government to reconsider the proposed increase in minimum wages and restrict it to maximum 15 per cent so that the industry does not lose out its competitiveness.

The Gujarat government had recently proposed to grant an increase in the minimum wage by an average of 25 per cent plus across categories.

GCCI said the proposed increase is quite steep in comparison to the hike implemented during the past years.

“This will create a significant impact on the cost structure in key industrial sectors. It will also lead to businesses increasing prices which would in turn fuel inflation,” pointed out the industry body.

They also stressed on the lack of demand and reduced business for the industries especially MSMEs due to covid-19 pandemic, global uncertainty and inflation.

Gujarat’s proposed increase in minimum wages is higher than its adjoining states which will put our industries at a clear disadvantage, it said.

Hence it has asked the government to reconsider proposed increase in minimum wages and ensure that the interest of industries are not compromised.  (KNN Bureau)