(MENAFN- KNN India) Bengaluru, Nov 25 (KNN) The Karnataka Small Scale Industries Association (KASSIA) has welcomed the Government's introduction of the New Labour Code, describing it as one of the most significant labour reforms undertaken in independent India.

The Association said the consolidation and simplification of multiple labour laws into unified codes would help create a more transparent, efficient and business-friendly regulatory framework, particularly benefiting the Micro, Small, and Medium Enterprises (MSME) sector.

KASSIA President B.R. Ganesh Rao said the new framework offers a balanced approach that supports both employers and workers.

He noted that the reforms are expected to reduce compliance burdens, improve formalisation and provide MSMEs greater operational clarity, thereby enhancing productivity and enabling sustainable growth.

The Association added that the shift to a modern, streamlined labour regime aligns with the aspirations of a rapidly growing economy and will support India's efforts to attract investment and expand employment opportunities.

According to KASSIA, the New Labour Code introduces benefits such as uniform minimum wages, greater employment flexibility, improved work–life balance and increased transparency in wage payments and compliance processes.

However, it also acknowledged that challenges persist, including higher labour costs for MSMEs, increased social security obligations, the need for digital readiness and the potential for confusion during the transition phase.

Smaller enterprises in rural and semi-urban areas, the Association said, may require additional support to adapt to the new requirements.

KASSIA has urged the Karnataka government to facilitate smooth implementation of the labour code and to ensure that MSMEs receive adequate guidance, capacity-building support and awareness programmes.

The Association reaffirmed its commitment to working with the government to help ensure that the intended benefits of the reforms reach all stakeholders.

(KNN Bureau)

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