The ongoing Iran war has driven up global oil and energy prices, sharply impacting production costs in import-dependent economies like India. Disruptions through the Strait of Hormuz have pushed up fuel and petrochemical input costs, putting industrial operations under strain.
In Mandideep, a major industrial hub near Bhopal, units dependent on petrochemical raw materials are feeling the squeeze as rising costs and delayed supplies force them to scale back production, cut shifts and reduce wages.
A visit to the industrial area on Monday morning revealed a visible slowdown. Factories that once ran three shifts now operate at reduced capacity, with fewer trucks at the gates and machines running at half pace in several units. Overall production has dropped by nearly 30%, reflecting the cascading impact of higher input costs and logistical bottlenecks.
LABOUR SQUARE TELLS STORY OF JOB LOSSES
The slowdown is most visible at Mandideep’s labour square, where the number of workers seeking daily employment has surged. Many have either been laid off or have left jobs due to wage cuts.
Bhura Jatav, a migrant worker from Vidisha who has been in Mandideep for nearly eight years, said he quit his job at a plastic unit after his daily wage was reduced from Rs 600–700 to Rs 450. With raw material supplies drying up, factories have cut operations to a single shift, leaving workers scrambling for work and often returning empty-handed.
The crisis is forcing many workers to return to their villages. Golu, a factory worker from Sagar, is among those leaving after losing his job. Unable to keep up with rent and rising expenses, he packed his belongings to head home, hoping to return when conditions improve. “There’s no work right now, and costs are too high to manage,” he said.
FACTORIES CUT STAFF, OUTPUT AND ORDERS
Inside factories, the impact is equally stark. At a pen manufacturing and packaging unit, the workforce has been halved from around 100 to 50 workers. Owner Poornima Raja Jain said reduced availability of raw materials has slowed production and cut packaging work. “When supply drops, everything slows down. We are sending fewer orders and cannot afford to keep more workers,” she said, pointing to rising costs and falling demand.
LABOUR SUPPLY AND EXPORTS TAKE A HIT
Labour contractors confirm a sharp fall in demand. Rammani Dwivedi, who supplies workers to factories, said daily labour deployment has dropped from around 300 to 150–175. “When production falls, even support roles are reduced. The impact on jobs is immediate,” he said.
Industry representatives say the disruption goes beyond local manufacturing. Neeraj Jain, General Secretary of the Association of All Industries, Mandideep, said delays in shipments and reduced petrochemical output have hit nearly half the domestic market. Exports have also declined sharply, with monthly container volumes falling from over 3,500 to around 1,500, and shipments to Gulf countries largely stalled over the past month.
A LOCAL ECONOMY UNDER GLOBAL PRESSURE
After spending a day in Mandideep, the larger impact becomes clear. Workers who have no direct connection to the war are bearing its heaviest burden. The slowdown in this industrial town reflects how a distant geopolitical conflict can ripple through supply chains and hit local economies: slowing factories, shrinking jobs, and forcing workers back home as uncertainty deepens.
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