Central Government has indicated that textile industry would be in trouble, if labour scenario would not be modified. However, it was pointed out that the changes should not lead to a violation of labour laws in textile industry, as the surge in textile exports has caused an urgency to bring about labour law reforms.

Textile exports in the current fiscal year are expected to touch $ 19.6 billion, compared to $ 17 billion in 2005-06 as the performance in the post-quota regime has improved drastically and investment in the sector has shot up from around Rs 15,000 crore in 2004-05 to over Rs 30,000 crore in 2005-06.

The trade unions are planning to discuss the issue of violation of labour laws, illegal retrenchment, refusal to register trade unions and non-compliance of Wages Act with the government.