This report presents findings from Cividep India’s 2022–2024 study of contract manufacturing and working conditions in India’s ready-made garment industry. The research operationalizes a bottom-up HRDD framework — developed in consultation with workers, unions, and civil society — so that workers’ lived experiences directly influence risk assessment and mitigation.
Findings indicate that monopsony capitalism, where a few brands control production terms, is associated with wage suppression, high overtime, informality, and harassment on factory floors. Key results include a 72% gap between actual and living wages, 81% prevalence of overtime work, 66% of workers with social security coverage, and widespread verbal and physical harassment. Brands commonly employ open-costing, refuse price adjustments for wage increases, and impose shorter lead times. Most manufacturers face penalties for late deliveries and report unfavorable order negotiations. Additional issues include gender wage gaps, limited collective bargaining access, and insufficient paid leave.
The HRDD framework recommends living wage-based pricing, equitable sharing of environmental costs, and strengthened workplace dialogue, aiming for systemic, long-term improvements aligned with global standards. This research is part of Cividep’s work with STITCH, an international collaboration promoting human rights and decent work in the garment sector.