As corporates prosper by keeping educated youth tied to low wages and long working hours, who will pay the price for education acquired through loans and the crores spent by the public exchequer on skill development? – An analysis with corporate fashion retail brands as the focus
Kerala has always had a distinctive place in India for its educated workforce. As market culture has rapidly taken root, the organised retail sector—including branded ready-made garments, watches, footwear, supermarkets and other segments—is expanding at a fast pace. The sector is playing no small role in creating employment opportunities. Young people constitute a substantial part of the workforce filling these jobs. At the same time, they are increasingly pursuing higher professional qualifications, including specialised training in modern marketing strategies, to meet the demands of the changing market. Yet concerns over their wages, working hours, job security and dignity at the workplace remain.
The author has had first-hand experience of how employment and wage practices in the textile and garment manufacturing sector affect an organisation’s credibility and the welfare of its employees. A period of professional involvement in social compliance auditing also brought direct experience of the employment problems faced by professionally qualified young candidates, including those working in organised fashion retail. These problems may not be confined to this sector alone. However, it is because the undesirable employment practices in this sector have been experienced first-hand that Kerala’s corporate fashion retail industry is the principal subject of this article.
Westside, Zudio, Croma, Reliance Trends, Marks & Spencer, Aditya Birla Fashion Brands, MAX, Lifestyle and H&M represent only a partial list of major fashion retail brands operating in the market. The presence of these prominent players underscores the sheer scale and rapid expansion of the sector. The discussion of employment practices in this article should not be construed as a blanket assertion that every brand listed here engages in non-compliant practices. At the same time, it must be acknowledged that wage structures and service conditions inconsistent with statutory labour standards do persist in segments of this industry.
These suboptimal employment conditions disproportionately impact young entrants who hold advanced professional qualifications and are seeking to establish their careers. Concerns regarding these reported employment practices have already been formally submitted in writing to the Government of Kerala as well as to the respective corporate managements.
The Organised Retail Sector on the Fast Track
Since the mid-1990s, following economic liberalisation, India’s retail landscape has undergone a decisive shift from predominantly unorganised trade towards organised and modern retail. Indian corporates and global retailers entered the market, bringing corporate management, transparent accounting, defined working structures and greater emphasis on compliance. Organised retail was expected to offer fixed working hours, better employment quality and stronger career prospects than the unorganised sector.
The organised retail sector has, after decades, clearly demonstrated the scale of its transformation. It now contributes more than 10 per cent to the country’s Gross Domestic Product (GDP) and provides employment to more than 45 million people. Within the organised fashion and apparel sector alone, an estimated 4–5 million direct and indirect employment opportunities have been created. According to a report by V5 Global, India’s retail market is projected to expand from US$1.18 trillion in 2025 to nearly US$2 trillion by 2030, while an additional 25 million jobs are expected to be created by the end of the decade [1].
The fashion sector, too, is advancing alongside the rapid expansion of retail. According to a 2024 report, India’s fashion retail market was valued at US$60.12 billion. Driven by rapid urbanisation, the growing influence of digital technology and a large young consumer base, the fashion retail market is on a strong growth trajectory [2]. With consumers showing an increasing preference for premium products, the number of consumers in this segment is estimated to reach 100 million by 2027 [3].
Behind these impressive growth figures stands a workforce comprising sales employees, visual merchandisers, store managers, supply-chain personnel and others. The emergence of professional courses, including specialised MBA programmes, reflects the growing demand for management-trained human resources in retail, particularly in the fashion and apparel sectors. Yet the question of whether the professionals driving this remarkable growth are receiving wages and benefits commensurate with their qualifications receives little attention.
Wages Disproportionate to Qualifications
For freshers with higher professional qualifications, it has come to notice that the monthly salary being offered is ₹12,000–₹15,000. Working hours: 11-12 hours a day — almost half the day. The requirement under labour law that wages for work performed during one month should generally be paid during the early days of the following month is, in many cases, reportedly not being followed. Section 17 of the Code on Wages, 2019, and Section 17 of the Kerala Shops and Commercial Establishments Act, 1960, are relevant in this context.
In some instances, employees reportedly receive their monthly wages only after 45 days. There is hardly any need to explain the financial hardship caused by such delayed payment of wages. Employees working at retail counters are required to remain standing throughout their working hours. They may also be required to undertake physically demanding work, including unloading goods arriving at showroom warehouses. Yet such duties are not necessarily disclosed at the time of recruitment.
The contrast with the treatment of interstate migrant workers in Kerala is noteworthy. Such workers are paid around ₹1,000–₹1,200 a day for eight hours of work. It is against this comparison that the real picture of the disparity in the compensation of educated young people in the fashion retail sector becomes clear.
Fashion Brands and Franchise Operations
Retail outlets may operate under franchise arrangements. Corporate retail management, therefore, appears to distance itself from employment practices at such outlets, arguing that they have no role in them. From the standpoint of statutory compliance and corporate governance, such an approach requires scrutiny. Labour laws cannot be set aside, nor can the value of human resources be ignored. Responsibility cannot simply be placed on franchisees while brand managements distance themselves from the employment conditions under which their brands operate.
If a candidate is selected after an interview, the candidate should be provided with an offer letter clearly specifying the job description, designation, duty hours and terms and conditions of employment. At the time of appointment, an appointment order should also be issued, as provided under Section 6(f) of the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, and Section 5D, Chapter 1B of the Kerala Shops and Commercial Establishments Act, 1960.
This should also be read alongside the statement made by the Union Labour Minister in Parliament on 12 February 2026, that workers should be provided with appointment letters. The law also requires employers to maintain records containing complete information relating to the employment of workers. Section 33 of the Occupational Safety, Health and Working Conditions Code, 2020, and Section 30 of the Kerala Shops and Commercial Establishments Act, 1960, provide for such requirements. Even when retail outlets operate under franchise arrangements, these labour-law requirements remain applicable. But what is happening in practice? There appears to be a situation in which franchisees are treated as though labour laws do not apply to them.
Brand managements should ensure that legally compliant service and wage conditions for employees are incorporated into agreements with franchisees. Even where such provisions are included, brand managements have a responsibility to ensure that franchisees actually comply with them. The fact that brand managements do not always take steps to ensure such compliance needs to be addressed.
Representations Without Response
During the first week of July 2026, representations detailing concerns regarding non-compliant employment and wage practices in Kerala’s corporate fashion retail sector were submitted to the Kerala State Labour Commissioner (lc.lc@kerala.gov.in, lbrcommissioner@gmail.com date: 2 Jul 2026, 07:47), the State Labour Department Secretary (secy.labour@kerala.gov.in date: 4 Jul 2026, 06:04), and the ministers concerned with Labour and Youth Affairs. There has been no formal response or indication of an inquiry so far.
An email was also sent to the Chairman of the Tata Group on 22 June 2026 (chairman@tata.com, info@tata.com, 22 Jun 2026, 12:51). However, no formal response has been received to date. An email (18 Jun 2026, 19:17; Ticket No: 4781790440760) sent to Westside, operated by Trent Ltd. of the Tata Group, on 18 June 2026, was acknowledged as “feedback”. A communication was subsequently sent to the Landmark Group, which operates the Lifestyle and MAX brands, on 19 August 2026 (Date: Wed, 19 Aug 2026, 19:37; Subject: Re: Unethical Employment Practices at Kerala Outlets). To: help@lifestylestores.com. No formal response was received before the time of writing.
The issue of the employment difficulties faced by educated youth was also brought to the attention of the Chief Minister of Kerala. A comprehensive proposal on administrative reforms concerning fair employment and wage conditions for young job “seekers”—”Government Matters as Usual — Does It Need Reform?”—was personally submitted to the Chief Minister in the Legislative Assembly Chamber on 30 June 2026. The proposal included measures such as wage audits, fair-pay certification, wage transparency and studies on the underemployment of educated youth—that is, situations in which people are compelled to work in jobs below the level of their educational qualifications. The concept of a “Kerala Educated Youth Fair Pay Mission” was also included in the proposal. The Chief Minister’s office, however, has not issued a formal response so far.
The Burden of Education Loans
A significant financial investment lies behind the majority of graduates seeking employment. In the expectation that professional qualifications will lead to better employment and financial security, young people increasingly depend on bank loans to pursue higher education. According to the 372nd Report of the Parliamentary Standing Committee (2025), based on Reserve Bank of India data, outstanding education loans increased from ₹78,661 crore in 2021 to ₹83,876 crore in 2022. The figure rose further to ₹99,086 crore in 2023, ₹118,155 crore in 2024, and ₹137,474 crore in 2025. The sharp increase in education-loan outstanding amounts has occurred alongside rising education costs. This deserves particular attention.
Kerala’s education-loan figures are also significant. Public-sector banks disbursed education loans amounting to ₹8,937.78 crore in Kerala during the financial years 2022–25. According to RBI data furnished to the Rajya Sabha in 2025, Kerala was among the states that received the highest volume of education loans during these three years. The ability of young borrowers to repay these loans is far from secure. There is also the concern of education loans becoming non-performing assets.
Consider the situation: substantial expenditure on education, followed by a job paying ₹12,000–₹15,000 a month, while the employee has to meet expenses for rent, food, travel and medical treatment. Under such circumstances, the ability to pay education-loan instalments inevitably comes under pressure. Repeated repayment defaults can lead to a lower CIBIL score and, consequently, denial of future credit facilities. Economists concerned about education loans becoming NPAs must therefore be prepared to examine a fundamental issue: Are the jobs available to young borrowers after completing their education providing them with an income base sufficient to achieve financial self-reliance?
Skill Development: Who Are the Beneficiaries?
Large amounts of public money are being spent on skill development. According to figures presented in the Rajya Sabha on 21 December 2022, the Ministry of Skill Development and Entrepreneurship allocated ₹15,192.79 crore during 2017–22 for its major schemes and institutional expenditure. The objective of spending such enormous amounts from the public exchequer is to skill the workforce and make it capable of securing employment. But skill development funded with thousands of crores of rupees from public resources can be genuinely beneficial only if the skills acquired translate into quality employment, fair wages, improved family incomes, and better living standards.
Does it require much effort to identify who ultimately reaps the benefits of the thousands of crores spent from the public exchequer on developing and upgrading human resources? Is the government, in effect, creating a workforce that enables corporates to employ people at low wages? The answer is simple: yes. Beyond this, it would not be an exaggeration to argue that the crores of rupees spent on skill-development programmes have failed to deliver their intended benefits.
While excessive importance is being given to investment and corporate profits, there is a parallel approach that undervalues the productive potential of the young workforce. The consequence is a widening gap between economic growth and the real prosperity of families. In a country that encourages its youth to acquire university degrees, professional qualifications and industry-relevant skills, they are nevertheless confronted with low wages and long working hours. In other words, human capital is not being accorded the value it deserves. This is reflected in the fact that a large majority of the population is being left out of the much-publicised benefits of economic growth. The result is an economy that may show impressive growth figures, while the real economic well-being of ordinary families continues to lag.
The Problem Is Not Confined to Kerala
The undesirable service and wage practices observed in Kerala’s organised retail sector cannot simply be dismissed as isolated employment problems. The larger issue is that an educated workforce—which should become one of the cornerstones of India’s economic growth, development and social progress—is being subjected to suboptimal working conditions. Pointing this out does not mean opposing Indian corporate establishments, global brands or private investment. The central issue is that corporate commercial success should not come at the cost of the dignity and legitimate expectations of young employees.
The Union Government has been projecting the ambition of taking India’s economy towards the US$5 trillion mark. But it must not be forgotten that the real beneficiaries of economic growth should be the workforce that contributes substantially to creating that growth. The issue of educated young people—including those employed in organised retail—working long hours for monthly salaries of ₹12,000–₹15,000 remains unresolved. Against this troubling backdrop, claims that the economy is moving towards spectacular growth warrant reconsideration. It is also pertinent to make sure that those in positions of power also examine whether the interests of young people are being prioritised over capital-driven corporate interests.
A country’s comprehensive development cannot be considered complete merely because its GDP reaches the size of a US$5 trillion economy. The country’s greatest asset is its young population, enriched and empowered by quality education. The size of the economy must become a driving force in securing a stable and prosperous future for this generation. That is where the true trajectory of the country’s broad-based growth will ultimately be determined.
Author: Editor, panancherynews.com; Former Key Account Manager – Social Compliance Audit, TÜV SÜD, a German multinational; Research Fellow – ICHR
[1] https://www.ptinews.com/press-release/indias-retail-workforce-poised-for-structural-shift-as-sector-nears-usd-2-trillion-by-2030/3197661
[2] https://www.nexdigm.com/market-research/report-store/india-fashion-retail-market-report/
[3] https://www.firstresort.in/blogs/research/premiumization-indian-fashion-2026
