The sight of migrant workers huddling together at railway stations, looking for an urgent escape to the safety of their hometowns, is reminiscent of the unfortunate days of the Covid lockdown. The script appears to be playing out once again, albeit in a less visible manner. The migration of workers — triggered by fears of an imminent shortage of cooking gas due to the Iran war, as well as high US tariffs — has begun to impact industries.
TNIE spoke to industry leaders and businesses based in industrial clusters of Chennai, Coimbatore, Amritsar, Jalandhar and Ludhiana, and sensed palpable concern among manufacturers and exporters over a potential shortage of workers.
Exporters in labour-intensive sectors such as textiles, engineering goods and hand tools have reported a severe labour shortage. Industry players have flagged the issue and are seeking government intervention to improve living conditions and introduce measures to retain workers and minimise reverse migration.
“This year, reverse migration has increased significantly. We have been struggling with this trend for the past few years. Of the workers who went home during Holi, around 12–18% have not returned,” said Deepak Dumra, director at Eveline, a textile manufacturer and supplier to brands such as Van Heusen and Guess.
Some of these sectors had already witnessed a decline in exports following the imposition of US tariffs in August last year. The resulting fall in production due to weak export demand led to a sharp decline in the hiring of daily wage labour during that period. Before the sectors could recover from the tariff impact, the West Asia crisis further dented worker confidence.
According to exporters in Punjab, many workers fear that the geopolitical situation could affect industrial activity, prompting them to seek alternative employment opportunities in their hometowns. As highlighted by Federation of Indian Export Organisations (FIEO) President S C Ralhan, around 5–7% of workers did not return due to LPG-related disruptions arising from the ongoing crisis.
Sameer Ralhan, owner of Sri Tools Industries, a Punjab-based hand tools manufacturer and exporter, said: “Around 30–35% of workers did not return to Punjab after Holi. Reverse migration is a major challenge for states like Maharashtra, Punjab and Haryana. There is a need for proper accommodation. The industry wants the government to ensure housing for labourers.”
Exporters added that units which have been able to provide accommodation near factories have managed to retain their workforce more effectively, underscoring the importance of better living conditions.
Meanwhile, India’s key auto component and home appliance manufacturing hubs such as Chennai and Coimbatore have also been facing mounting pressure over the past month, with migrant labour shortages emerging as a major concern for MSMEs.
Tamil Nadu has long depended on migrant workers for engineering jobs in small and medium enterprises, with labourers coming from states such as Bihar, Uttar Pradesh, Jharkhand, Odisha, Assam and West Bengal in search of employment.
Muthiah Balachandran, CEO of Delcosys Manufacturing, an auto parts maker based in Chennai, said the shortage has worsened in recent weeks. “For the past month, we have been facing a shortage of 8–10 workers. Now, one person is operating two machines. Employees fear they won’t get LPG for cooking, so they prefer staying in their hometowns and using traditional fuels,” he said. The company, which runs 20 machines, has seen its workforce decline from 25–30 workers to about 15, prompting it to arrange temporary cooking solutions for migrant employees.
AN Gireeshan, managing director of Avon Seals, offered a different perspective, noting that companies providing alternatives have managed to retain workers. “Historically, Tamil Nadu has depended on migrant labourers. After Holi, many workers did not return, citing LPG shortages. However, in our company, no one has left as we are providing alternative cooking arrangements,” he said.
In response, the state government has asked Torrent Gas to ensure piped natural gas (PNG) supply to industrial units in Chennai within 60 days.
Industry estimates indicate that nearly 2 lakh workers in Coimbatore left for Holi in late February and early March and are yet to return, partly due to concerns over LPG availability.
K Veluswami of the Institute of Indian Foundrymen’s Coimbatore chapter said around 10–20% of migrant workers — roughly 10,000 labourers across western and southern Tamil Nadu — have not returned due to LPG shortages. “In Coimbatore, nearly 90% of workers are from Bihar. We require about 200 LPG cylinders a month for foundry operations but are receiving barely 20. This has severely impacted production, and MSMEs are facing significant hardship,” he said.
He added that while his unit requires about 100 workers, only 50–60 are currently available.
Saravanan Ranganathan, managing director of Sandfits Foundry, said the pattern of early departures has worsened. “Workers who join in January typically stay for 8–12 months, but now many are leaving as early as March. Across my three factories, I employ about 300 workers but currently face a shortage of around 150. Workers fear gas shortages and lack of food availability,” he said.