"Unable to Endure High Prices"... Workers Leave Cities for Hometowns

A Fourfold Jump in LPG Prices Hits Livelihoods Hard
Energy Shock Puts Indian Manufacturing on Alert

Due to the aftermath of the Iran war, the price of household gas has soared, leading hundreds of thousands of Indian manufacturing workers to leave their jobs and return to their hometowns.

Kunta Devi, a worker who used to work in an industrial complex on the outskirts, and her son Raja Babu recently vacated their accommodation and returned home. "Due to the rise in gas prices, it will be difficult for our lives to return to normal until the war ends," they said. Getty Images

According to the Financial Times (TF) on May 13 (local time), Kunta Devi, a worker at an industrial complex on the outskirts of New Delhi, and her son Raja Babu recently vacated their accommodation and returned home.

The two had a combined monthly income of 20,000 rupees (about 310,000 won) from factory work, but as the price of cooking liquefied petroleum gas (LPG) has risen nearly fourfold, it became impossible for them to make ends meet. Raja Babu told the Financial Times, "Due to the rise in gas prices, it will be difficult for our lives to return to normal until the war ends."

The Indian government has been promoting the 'Make in India' strategy to become a global production hub, but the wages of on-site workers have not kept up with rising prices of food, fuel, and rents. Getty Images

The problem goes beyond merely the burden of living expenses; it reveals the structural vulnerability of India's manufacturing competitiveness.

The Indian government has been promoting the 'Make in India' strategy to become a global production hub, but the wages of on-site workers have not kept up with rising prices of food, fuel, and rents.

The problem goes beyond merely the burden of living expenses; it reveals the structural vulnerability of India's manufacturing competitiveness. Pixabay

As worker departures accelerated, the Uttar Pradesh government, led by the ruling party of Prime Minister Modi, raised the minimum wage by up to 21%. However, companies have strongly opposed this move, citing the burden of increased labor costs.

Experts point out that this situation highlights the limitations of India's manufacturing growth strategy. Himanshu, a labor economics professor at Jawaharlal Nehru University (JNU), stated, "An economy where workers cannot earn a living wage cannot become an advanced economy," adding, "Since 2011-2012, real wages have been steadily declining."

This content was produced with the assistance of AI translation services.