"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 surge in household gas prices following the Iran war, hundreds of thousands of manufacturing workers in India are leaving their jobs and returning to their hometowns.

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

The two earned a monthly income of 20,000 rupees (about 310,000 won) from their factory jobs, but with the recent price of cooking liquefied petroleum gas (LPG) rising nearly fourfold, it became impossible for them to make ends meet. Raja Babu told the Financial Times, "Because of the rising gas prices, it will be difficult for our lives to return to normal before the war ends."

The problem is not simply the burden of living expenses but highlights the structural vulnerabilities of India's manufacturing competitiveness.

The Indian government has promoted the "Make in India" strategy to become a global manufacturing hub, but the wages of on-site workers have not kept pace with rising food, fuel, and rental costs.

As the worker exodus intensified, the government of Uttar Pradesh, led by the ruling party under Prime Minister Modi, raised the minimum wage by up to 21 percent. However, companies are strongly protesting, citing the increased burden of labor costs.

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