Mumbai, Oct. 8 -- The Indian apparel industry is expanding into less industrialized states such as Odisha, Bihar, Jharkhand and Madhya Pradesh, seeking greater labour availability, lower wages and, in many cases, additional state subsidies.

The shift is being driven by rising labour costs and shortages in established manufacturing hubs such as the national capital region (NCR), Bengaluru, Tiruppur and Chennai, where companies also rely heavily on migrant workers. The newer production bases offer access to a larger local workforce at relatively lower wages, while state incentives are adding to their appeal, industry executives said.

Listed companies such as Pearl Global Industries Ltd, Page Industries Ltd, Gokaldas Exports Ltd and KPR Mi...