The recently re-elected Prime Minister of the country, Narendra Modi, has proposed an increase of up to 40% in some of the most remote areas of the country.
The new Indian government is studying to raise the country's minimum wage. The country's Prime Minister, Narendra Modi, re-elected in the last Indian elections, is planning to raise it up to 30% or 40% in some states of India. The minimum wage of the country is granted by each state, although it must always be above the quota set by the central government.
The measure will be included in a new labor law proposed by the government after the previous bill in this regard had to be paralyzed due to the proximity of the elections. The Indian Labor Minister, Santosh Gangawar, has confirmed that the new law will also have an article referring to the minimum monthly payment, according to Just-style.
Currently, the minimum wage established for the whole country is 4.90 dollars per day, with a variable plus based on inflation. However, as it is a decentralized regulation, the state of New Delhi, for example, has a minimum wage of 7.90 dollars a day, while other regions, such as Chhattisgarh, maintain the same criteria as the one set by the central government.
The rise of the minimum wage in India could affect exports of the textile sector, as well as the management of staff
For this reason, Indian manufacturers have progressively moved their production to the Indian states farthest from the capital, where the minimum wage is lower.
With the potential increase of the minimum wage by the Government, the companies would no longer have reasons to move to remote productive areas, according to Chandrima Chaterjee, director of the Indian Council for the Promotion of the Exportation of Clothing (Apec, for its acronym in English).
While the central government believes that the measure will increase growth and boost investment, the Indian textile sector says that raising the minimum wage will affect exports and personnel management, since there will not be enough resources available to pay the overtime hours of Indian employees.