The Southern India Mills’ Association (SIMA), established in 1933 under the initiative of independent India’s first Finance Minister, Late Sir R.K. Shanmukham Chetty, represents the entire textile value chain in South India. With over 110 million direct jobs, the textile industry is India’s second-largest employer after agriculture. SIMA has been proactive in advocating for labour reforms to simplify antiquated laws and enhance social accountability.
The Government of India has implemented four labour codes—the Industrial Relations Code, 2020; Code on Social Security, 2020; Occupational Safety, Health, and Working Conditions (OSHWC) Code, 2020; and Code of Wages, 2019—that came into effect on November 21, 2025. These rationalise 29 existing labour laws into comprehensive, modern legislation.
SIMA Chairman Mr Durai Palanisamy praised the government and Prime Minister for this bold initiative, calling the reforms a historic milestone following transformational taxation changes. The new labour codes align India with global social accountability norms, such as the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), enabling better access to markets like the EU and the US through FTAs.
Key features of the labour codes include flexible fixed-term employment, relaxation in working hours, a single pan-India certification and registration license, mandatory worker health checkups and appointment orders, enhanced safety measures for women workers during night shifts, and annualised gratuity benefits. While the reforms increase costs for worker benefits, they ensure robust protection for labour interests.
SIMA’s longstanding role includes active government engagement, supporting legislation that sustains industry viability and social justice in India’s extensive textile manufacturing sector.