FIEO’s response to the labor codes announced to improve employment across the country: Social inclusion and female labor participation will be promoted.

FIEO’s response to the labor codes announced to improve employment across the country: Social inclusion and female labor participation will be promoted.

The four labor codes announced by the Central Government, as part of comprehensive labor law reforms in India, have received a consistently positive response from the industry. In this context, the Federation of Indian Export Organizations (FIEO) has described these labor codes as a historic step toward improving employment, stating that they will not only promote social inclusion but also significantly improve women’s workforce participation. FIEO believes that these reforms will simultaneously boost India’s export potential, industrial competitiveness, and inclusive growth.

Four Labor Codes: The Foundation for Reforms

The Central Government has implemented four labor codes with the aim of simplifying, clarifying, and modernizing labor laws in the country—

1. Code on Wages
2. Industrial Relations Code
3. Code on Social Security
4. Occupational Safety, Health and Working Conditions Code

These codes have consolidated 29 outdated, complex, and fragmented laws into a unified framework, making the rules easier to understand for both employers and employees.

FIEO’s View: Inclusion vs. Productivity

FIEO stated in its statement that the labor codes are not merely administrative reforms but a step towards social transformation. According to the organization, the new framework has paved the way for bringing sections such as the unorganized sector, gig workers, and contract employees under comprehensive social security coverage for the first time. This will enhance workers’ sense of economic security, enabling them to remain more productive and permanently engaged in the workforce.

FIEO believes that when workers receive benefits like insurance, pension, and health protection, the quality of human capital in the country will improve, which will directly benefit export industries.

Potential Increase in Female Labor Participation

Female labor participation has long been a concern in India. According to FIEO, the new labor codes contain several provisions that create a safer, flexible, and respectful working environment for women—

Allowing women to work night shifts, provided adequate safety measures are in place.

Strict enforcement of regulations such as maternity benefits, equal pay, and protection from workplace harassment.

E-registration and digital compliance systems will make it easier for women to file complaints and demand their rights.

These reforms are expected to increase women’s participation, especially in export-oriented sectors such as textiles, pharmaceuticals, ITES, and food processing.

Direct Benefits to the Export Sector

FIEO emphasized that labor reforms will make India’s export sector more competitive. Better labor regulations, a skilled and satisfied workforce, and reduced labor disputes—all these factors will help reduce production costs and improve quality. This will also provide new impetus to initiatives like “Make in India” and “Vocal for Local.”

Challenges and the Way Forward

While FIEO has openly praised the labor codes, it also acknowledges that on-the-ground implementation will be the biggest challenge. States need to issue notifications, educate workers and employers, and strengthen digital infrastructure.

FIEO recommends:

State governments should issue notifications promptly

Worker training and awareness campaigns should be intensified

Regular dialogue should be held between industry associations and trade unions

So that the labor codes bring about real change, not just paperwork.

Conclusion

In FIEO’s view, the new labor codes are an effort to adapt India’s labor structure to the needs of the 21st century. These reforms have the potential to simultaneously strengthen social inclusion, women’s labor participation, and export competitiveness. If the central and state governments work together to implement these effectively, India will not only become economically stronger but also move towards a more equitable and inclusive work culture.

The true fruits of these reforms will be seen only when the policies are visible on the ground, benefits reach workers, and industries are provided with a transparent and conducive environment. FIEO’s positive response indicates that India’s export community also sees these reforms as an opportunity—one that can further empower the country on the global stage.