Noida workers protest: UP government hikes minimum wages, but can exporters afford it?

The Uttar Pradesh government recently announced wage hike for workers in the state, but can every employer afford to pay more? According to garment exporters in the region, rising costs and squeezed margins leave little room to absorb the increase without risking business losses.The concern stems from amid ongoing labour unrest across Noida factories, which has begun to cast uncertainty over production timelines and future export orders. Exporters said that the situation is being closely watched by global buyers, many of whom are already seeking clarity on whether shipments will be delayed. Lalit Thukral, president of Noida Apparel Export Cluster, highlighted the strain on the sector, stating, “With the rising input costs, it will be difficult for the exporters to pay the hike in wages.” Going further, he told ET, “Our margins are already under pressure and buyers are renegotiating to lower prices of apparels. If we do not comply, they will shift the orders to Bangladesh, Cambodia or Vietnam.” He added that the association is scheduled to raise the issue with the state government on Friday.

What is the revised wage structure?

The revised wage structure, which came into effect on April 1, increases minimum monthly salaries by up to 21% for workers in Noida and Ghaziabad.

Other municipal corporation areas

Other districts

Aftermath

The unrest, which began earlier this week, is already affecting sentiment in one of India’s key apparel export hubs. The Noida cluster employs between 800,000 and one million workers and exported garments worth about Rs 50,000 crore in FY26, contributing more than one-third of the country’s total apparel exports.According to industry executives cited by ET, continued disruptions could prompt global buyers to move orders to other manufacturing centres such as Bangladesh and Vietnam. Thukral said exporters are fielding frequent queries from international clients, noting, “We are flooded with queries from all the major global brands on whether delivery will be delayed due to the workers’ unrest.”Companies also pointed to broader challenges, including rising raw material costs, fluctuating freight rates and subdued global demand, which they said have left little room to absorb additional wage costs. Meanwhile, the Uttar Pradesh government said that of the 66 people arrested in connection with the unrest in Noida, 45 were not workers. In a statement issued on Wednesday, it said “external elements” had played a significant role in triggering violence and arson during the protests, adding that authorities acted promptly to thwart what it described as a “well-planned conspiracy” carried out under the cover of a labour movement.