Daijiworld Media Network – New Delhi
New Delhi, Nov 24: India’s electronics manufacturing sector has welcomed the notification of the four long-pending labour codes on wages, industrial relations, social security and working conditions, saying the reforms will enhance employee trust, reduce attrition and strengthen health and social protections across factories. Industry bodies also believe the move will significantly bolster women’s participation in India’s fast-growing electronics system design and manufacturing (ESDM) ecosystem.
The India Electronics & Semiconductor Association (IESA) said the sector stands to gain in four key areas — increased women’s workforce participation, stronger skill retention, improved safety culture and wider social protection. “Allowing women to work in all roles, including night shifts and specialised operations, with mandatory safety measures will expand the talent pipeline in semiconductor assembly, verification labs and 24×7 manufacturing units. Recognition of gig and platform workers and portability of benefits is a forward-looking move for a digital economy,” IESA noted.
The industry body also highlighted that fixed-term employment, faster dispute resolution, single licensing and simplified compliance will help scale high-tech manufacturing clusters. Meanwhile, parity of benefits for full-time employees and expanded social security will ensure balanced, worker-centric operations.
Women currently form a major segment of the ESDM workforce, with a 2024 Quess Corp report showing they account for nearly 78% of the industry’s manpower — largely in smartphone assembly, testing and quality assurance roles.
The India Cellular and Electronics Association (ICEA) said the labour codes will improve working conditions while driving business productivity. “Capping working hours at 8 per day and 48 per week, along with overtime at twice the regular rate, will ensure work-life balance and increase household income while supporting higher productivity,” the association stated.
ICEA Chairman Pankaj Mohindroo added that the reforms will bring “stronger social security, operational clarity and a more stable workforce environment”, aiding India’s goal of becoming a self-reliant electronics manufacturing hub.
However, IESA cautioned that some short-term challenges may arise, including higher wage and compliance costs as benefits expand, adjustment pressures for MSMEs and the need for stronger HR documentation practices.
“These Labour Codes will significantly strengthen blue-collar jobs by ensuring better wages, safer workplaces and expanded social security. A more formal and future-ready workforce will cut attrition and enhance productivity. This marks a crucial step in building globally competitive ESDM and semiconductor ecosystems,” IESA said.