Noida unrest disrupts electronics, auto manufacturing sectors; impacts output

The unrest escalated as workers blocked roads, torched vehicles and pelted stones at police, particularly in the Phase-2 industrial belt that houses major manufacturing facilities.

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Manufacturing activity in Noida, a key industrial hub in Uttar Pradesh, was disrupted on Monday after worker protests over wage demands turned violent, impacting both electronics and auto ancillary units.The unrest, which began on Friday, escalated as workers blocked roads, torched vehicles and pelted stones at police, particularly in the Phase-2 industrial belt that houses major manufacturing facilities.

Industry executives warned that the developments could weigh on investor sentiment and the area’s reputation as a reliable manufacturing base.

“We are at a time when things happening on the ground will start eroding confidence in an area which has built up global confidence through its own efforts. Places such as Noida and Manesar may be on the world map, but the events going on are threatening all that has been achieved. Cost advantages no longer mean everything to foreign investors, stability and predictability matter,” a top executive in the electronics manufacturing industry, told ETManufacturing on the condition of anonymity.The executive added that this problem doesn’t help anyone.

“What I am afraid of is that this problem doesn’t help anyone — the worker, the company, or even the investment environment. Even foreign players who have invested here for many years are shocked by what they see. The first requirement is the restoration of law and order and getting back to some normalcy. However, there is a need for a proper discussion on an industry-wide basis and with everyone involved in the process — from companies to trade unions,” said the executive.

On a more fundamental level, there also needs to be a change in the discourse. Relying on low-cost labor is not an effective approach to support the growth of Indian manufacturing. Emphasis must be placed on skills, efficiency, and automation to develop the ecosystem in line with a vision for a developed country, said the executive.

“Such trends are making us uncomfortable and, unless handled effectively, they could end up putting a blot on India’s image which we cannot afford,” added the executive.

Uttar Pradesh’s prime industrial hub, Noida, reported major worker unrest across key locations on Monday affecting the electronics and auto ancillaries that form a key part of the city’s industrial activities.

The protest, ongoing since Friday, turned violent when workers blocked traffic, torched cars, and pelted stones at the police, particularly near the Phase-2 industrial belt, home to key manufacturing companies such as the Motherson Group and Dixon Technologies.“I work at Motherson. They are paying us less salary. We want more. When we staged a sit-in protest, they beat us up with no fault of ours. Cylinders, vegetables and everything are expensive…We were beaten up when we protested today. I was hit in my legs. I demand that we be paid ₹20,000 as salary. Only then can we sustain ourselves, otherwise, the protest will continue,” Laxmi, a Motherson employee and one of the protesters, told ANI.
“This is a broader labour issue affecting multiple industries in Noida and some other cities, driven by misinformation being spread about wage revisions. Our operations remain compliant with all applicable laws with no material impact on the company. The safety of our employees remains our top priority. The authorities are working closely with the industry to bring things back to normal as quickly as possible,” said Motherson Group in an official statement.

According to a report, electronics manufacturing activity in Noida was disrupted on Monday, as the protest turned violent.

The likely trigger for the protests that initiated with the city’s garment industry has been Haryana’s recent 35 per cent minimum wage increase effective April 1, 2026, with workers in Noida now demanding similar revisions, overtime pay from April 11, two weekly days off, and bonuses by November 30.

According to news reports, factory workers in Noida are demanding higher minimum wages, from the current ₹13,000, as Haryana’s wage hike increased ₹5,000 from ₹14,000 to ₹19,000, demonstrating a hike of 35 per cent.

To arrest the escalating situation, the Noida Police deployed heavy personnel, used tear gas shells and imposed temporary traffic diversions to control the situation in areas such as Sector 62, Sector 63, Chilla border, Sector 15 and a few more. No arrests have been made, and no FIR has been registered so far, PTI reported.