Archive · 15 Aug 2026

Indian textile makers face rising labour and material costs

Indian textile makers face rising labour and material costs

Making clothes in India is getting more expensive for the companies that make them.

They have to pay workers more money because the government raised minimum wages.

The price of cotton and yarn, which is what clothes are made from, has also gone up.

Big clothing companies like Arvind, Pearl Global and Gokaldas are feeling this pressure.

These companies have a choice: they can make customers pay more, or earn less profit.

Some of the companies are buying machines to do more of the work automatically.

Other companies are building new factories in places where it costs less, like Central India, Bihar, Bangladesh and Vietnam.

The companies say the situation is temporary and are trying to pass higher prices to customers.

A weaker Indian rupee is giving exporters some help.

The companies hope things will get better over time.

Sources