How does one survive?’: Factory protests expose strain in India’s industrial system

This week, unusual demonstrations erupted in Noida, a satellite city near Delhi, as thousands of factory workers took to the streets. Their demands centered on improved wages and working conditions, marking a rare moment of collective action in the region. Most participants were contract laborers, often unaffiliated with unions, employed in small-scale manufacturing units across industrial zones that produce auto parts, electronics, and clothing, among other goods.

The workers’ monthly earnings range between 10,000 and 15,000 rupees—a figure that has stagnated for years. Many are migrants, residing in cramped accommodations on the city’s periphery, relying on daily wages to meet basic needs. What started as localized, peaceful gatherings in northern India has grown into widespread unrest, with some areas witnessing violent clashes. In Noida, law enforcement deployed tear gas to manage crowds and detained over 300 individuals.

Key to the unrest is the widening wage gap between states. Haryana’s recent 35% minimum wage hike, following similar protests, has intensified pressure on Uttar Pradesh, where Noida is located. The state government responded by announcing a temporary raise in two districts and pledging additional interventions. Yet, workers argue these adjustments fail to address systemic issues. “My hours exceed eight, but overtime is only paid for three,” said Soni Singh, a factory worker, citing his struggles with pay.

The crisis extends beyond individual paychecks. Experts highlight inconsistent enforcement of labor regulations as a core problem. Minimum wages, determined by state governments, vary significantly based on location and skill level. This means identical work can yield different salaries—even within the same region. While revisions are intended to be regular, delays are frequent, exacerbating inequalities. In Noida, these discrepancies have fueled growing frustration.

Rajesh Kumar, a Delhi-based trade unionist, explained the workers’ disillusionment: “Employers have long ignored minimum wage rules. With few job options, workers accept this as a given.” A female worker, who wished to remain anonymous, added: “I spend 5,000 rupees on rent and 4,000 on groceries. What remains? Nothing. We simply manage.”

Without major union leadership, these protests stand out in India’s labor history, according to an unnamed union official. The movement has also taken on political dimensions. Uttar Pradesh’s chief minister, Yogi Adityanath, labeled the violence a “conspiracy” to hinder development, while opposition leader Rahul Gandhi supported the workers, criticizing the government’s neglect.

Broader economic challenges underscore the protests’ significance. Government data reveals that nearly 90% of Indian workers earn less than 25,000 rupees monthly, equivalent to about $300. This aligns with Delhi’s skilled labor minimum wage but highlights the persistent underpayment in the informal sector, which employs over 310 million people. Rising living costs, including a surge in cooking gas prices linked to Middle Eastern conflicts, have further strained household budgets.

Recent protests have also drawn domestic workers into the fray, demanding better wages and access to education and healthcare for their children. Rakhi Sehgal, an independent labor researcher and former ILO consultant, described the situation as a “cost of living crisis” that has become central to these movements. However, small businesses struggle to meet higher wage expectations, as they operate on narrow profit margins. Even modest increases can threaten their survival, reflecting the broader tensions in India’s labor market.