Noida MSMEs flag wage hike amid rising costs, seek financial relief, subsidies

MSME entrepreneurs in Noida and Greater Noida have flagged rising costs and policy imbalance following the recent hike in wages and overtime.

At a joint press conference at the Greater Noida Press Club on Friday, industry representatives said the sudden revision in wages has shaken business viability. Sanjay Batra, General Secretary, Laghu Udyog Bharati (Gautam Buddh Nagar unit) said that abrupt decisions are pushing industries toward “near-zero viability,” adding that discussions were held in the morning and wage hikes were implemented overnight. Gupta alleged the move was taken under worker pressure, creating an uneven burden on industry.

“The industry needs relief measures, noting that while wages have been raised by Rs 3,000, the addition of bonuses and ESI pushes the effective increase to over Rs 6,000, creating a heavy burden. He added that businesses are already under severe pressure due to the Iran war, and warned that without government support, units may be forced to shut down or relocate,” added Batra.

Sarabjit Singh, Chairman, Indian Industries Association (IIA), Greater Noida Chapter, said, “The industry expects a special relief package for Noida, similar to the support extended to workers, stressing that business owners also need assistance. He warned that if their demands are not met, all joint industry associations will stage a protest outside the DM’s office.”

For context, the unrest hit Noida’s industrial belt on April 13 as protesting workers torched vehicles, pelted stones and clashed with police, alleging low wages and irregular pay. The mass protests demanded a Rs 20,000 monthly minimum wage and a strict 8-hour workday.

Entrepreneurs also pointed to a growing sense of insecurity following recent incidents of arson and vandalism in Gautam Buddh Nagar’s industrial areas. They warned that such disruptions could hurt both investment and production if not addressed promptly.

Jitender Singh Rana, former President, IIA, said, “The situation after the worker protests is very bad, adding that entrepreneurs feel unsafe entering their own factories. He said the industry cannot afford such wage hikes and needs government subsidies to cope.”

Need a balanced approach

While not opposing the intent, industry sought balance, saying it will comply with new norms but urging tax relief, subsidies or support to share the burden, warning operations may become unsustainable without it.

Entrepreneurs also sought a two-month pause on inspections, saying frequent checks amid rising costs are worsening operational strain and leaving little time to adjust.

The press conference saw participation from representatives of multiple industry bodies, along with over 40 entrepreneurs from the region.

“The situation underscores the need for balance between safeguarding worker interests and ensuring industrial stability. Industry leaders stressed that without sustained dialogue and calibrated policy support, the broader industrial ecosystem could face significant disruption,” said a Noida-based textile exporter.

An entrepreneur said the government, known for resisting pressure, took an overnight decision post-protests without consulting industry, sending a signal that strikes can force policy changes.

He said MSMEs, already strained by global tensions, rising costs and weak demand, were hit by an abrupt wage hike that sent a negative signal. While a revision was due, the last update was in 2014, and the industry was preparing inputs for consultations when the sudden announcement came.