Ludhiana’s Industries Hit Hard by Labour Crisis Amid Rising Tensions and Migration Shifts

Ludhiana, India – May 09, 2025 : Migrants going back to their native villages due to the ongoing tension between India and Pakistan at railway station in Ludhiana on Thursday, May 09, 2025.(Photo by Gurpreet Singh/Hindustan Times)

Ludhiana, often hailed as the “Manchester of India” for its robust industrial output, is facing one of its worst labour shortages in recent years — a situation that many local manufacturers describe as a “post-war vacuum.” With factories across sectors running far below capacity, the city’s industrial backbone is under serious strain.

A key reason behind the crisis is the significant drop in migrant workers, who form the bulk of Ludhiana’s workforce. Traditionally, workers from Bihar, Uttar Pradesh, Jharkhand, and West Bengal have powered the city’s manufacturing sector. But recent Indo-Pak tensions, coupled with seasonal migration and fear of conflict, have led to a mass return of these workers to their home states — many of whom haven’t come back.

“Labour Crisis Could Derail Exports”

DS Chawla, president of the United Cycle and Parts Manufacturers Association (UCPMA), expressed deep concern over the situation. “About 40–50% of the workers who had gone home haven’t returned,” he said. “We had hoped they’d be back after Holi or by mid-May, but even those who promised to return post-harvest haven’t responded.”

Chawla added that power cuts are only making things worse. “We’re missing export deadlines and losing clients,” he said, highlighting that cycle manufacturing is labour-intensive and lacks automation alternatives.

Knitwear and Textile Industry Also Struggling

Vinod Thapar, chairman of the Ludhiana Knitwear Club, said his sector is facing a similar crisis. “Our industry depends 95% on migrant labour. After the tensions with Pakistan, most of them went home and haven’t come back. Local youth aren’t stepping in either,” he said.

Factory owners have even turned to community announcements at gurdwaras and are offering stipends to attract workers, but the response remains poor.

Farm Season Adds to Worker Shortage

Another key factor is the ongoing paddy-sowing season in Punjab. Many migrant workers and even local youth have opted for agricultural jobs, which are easier and often offer better pay during this period. This seasonal shift has further drained the already limited workforce available to Ludhiana’s industries.

Industry at 50–60% Capacity

The impact is visible across sectors — hosiery, garments, bicycles, auto parts and machine tools. Many units are running at just 50–60% of their capacity. Smaller businesses, lacking backup resources, have shut operations temporarily, hoping for the return of workers.

Urgent Call for Government Support

Industry leaders are calling for immediate action. They want the state government, skill development agencies, and industrial bodies to work together to resolve the crisis. Without support, the current slowdown could snowball into rising job losses, falling exports, and declining investor confidence — threatening not just Ludhiana’s industrial edge, but also Punjab’s overall economic health.

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