India which is aspiring for becoming future manufacturing PowerHouse raising the contribution out of manufacturing to aspirational 25% in coming years; the recent development doesn't bode well, as Apparel exporters in Noida (U.P.) have raised concerns where Noida Apparel Export Cluster (NAEC) is a very active trade body representing the voice of garment sector mirroring that it is a very serious matter clearly reflecting that virtually trade experts are wary of garment export units' ability to absorb the recent minimum wage hikes announced by the Uttar Pradesh government close on the heels of hostile labour unrest demonstrated in the recent days, warning that shooting costs and amplified pressure from global buyers could jeopardize orders in the already uncertain times. The situation is further magnified by ongoing labour unrest, which industry experts/stakeholders say is already beginning to disrupt shipments to spoil the party.

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“With the rising input costs, it will be difficult for the exporters to pay the hike in wages,” said Lalit Thukral, president of the Noida Apparel Export Cluster (NAEC). “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.” Citation ET dated 16th April 2026.

The sources indicate that industry body is expected to decisively take up the critical issue with the U.P. state government on Friday/today, seeking a resolution that balances worker welfare with business sustainability to let the sanity prevail.
The event has led to Uttar Pradesh government announcing a wage rise of up to 21% for workers in Noida and Ghaziabad, effective April 1. The eventful move follows widespread labour protests since this Monday and revises/upward minimum monthly wages to ₹13,690 (INR) for unskilled labour, ₹15,059 for semi-skilled workers, and higher levels for skilled labour respectively.

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This is to be emphasized here that, this announcement has a serious impact for the Noida apparel hub which is already grappling with headwinds starting from Trump tariffs since good part of last year and, underpinning that this sourcing hub is a vital pillar of India’s apparel export ecosystem. As per trade estimates employing notably anywhere between 800,000 to one million workers; Again the cluster exported apparel worth ₹50,000 (INR) or thereabouts crore in FY26, accounting a noticeable chunk of over one-third of the country’s total apparel exports.

However, the ongoing unrest has already started to bite impacting future orders. as global brands are conspicuously seeking clarity on delivery timelines as protests continue across factory clusters. Industry executives/industrialists warn that protracted disruptions can derail/ accelerate a fatal shift of orders to competing manufacturing hubs such as Bangladesh and Vietnam which is going to be disastrous.

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Quotes
“We are flooded with queries from all the major global brands on whether delivery will be delayed due to the workers’ unrest,” Thukral noted, adding that nearly 50% of the workforce has been impacted by the ongoing situation". Citation: ET edition dated 16th April, 2026.

Pic: Google sourced
Credits: This article is an automated generated piece of information using ET dated: 16th April, 2026 edition. The content has been “edited in parts”.

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