Haryana Hikes Minimum Wage Amid Auto Industry Cost Pressures

The state of India===Haryana, India, ordered a 35% increase in minimum wages for unskilled workers, effective April 1, raising it to $165 per month. This decision followed widespread factory worker protests and boycotts in industrial hubs like Manesar, driven by surging living costs, particularly food prices, and disrupted gas supplies. These disruptions are linked to the U.S.-Israeli war on Iran, which has impacted global supply chains and raw material prices. India, the world's second-largest LPG importer, is facing its worst gas crisis in decades, leading the government to prioritize household gas supply over industrial use. The wage hike, while providing relief to workers, will escalate cost pressures for India's automotive industry, including major players like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra, some of whom have already raised car prices or warned of doing so. Suppliers like Munjal Showa and Roop Polymers experienced production impacts due to the unrest. The situation has also led to reverse migration of workers, prompting industry bodies like the India SME Forum to seek government intervention to retain the workforce.