Tensions and blockages in the Strait of Hormuz — caused by the ongoing Iran conflict and effective blockade in 2026 — are now roiling oil markets across the world and now also impacting the manufacturing hub of **Noida** and the entire National Capital Region (NCR). The crisis has caused the largest oil supply disruption in history; According to the International Energy Agency (IEA) report, about 8–12 million barrels of oil is being lost every day.
India, which imports about **87–89%** of its crude oil, is in a more vulnerable position in this situation. Rising oil prices around the world, volatile shipping costs and disruptions in logistics are driving up raw material and transportation costs for factories. This “double whammy” is occurring simultaneously with pressure to increase wages and a shortage of workers.
According to data from jobs platform **Apna**, participation of blue-collar workers on the platform has declined sharply — from a growth of +2.5% in Q1 2025 to a decline of **-5.6% in Q1 2026**. Many factories in Noida are facing labor shortage amid rising inflation, which is delaying production and forcing them to rethink their working methods.
This unrest resulted in violent protests by factory workers in Phase 2 and other industrial areas of Noida on 13 April; The workers were demanding higher wages (many were demanding ₹18,000–20,000 per month). Protestors blocked roads, pelted stones and damaged property, leading to heavy police deployment and arrest of over 300 people. Responding to this, the UP government implemented the increase in minimum wages from April 1 itself; Now unskilled laborers in Noida-Ghaziabad will get ₹13,690 per month (an increase of about 21%).
Economists have warned that sustained high oil prices could lead to further inflation, widening of the current account deficit, and pressure on the rupee. Even if the strait reopens, it could take months to get the supply chain back on track because of the overwhelming workload and damage to infrastructure. This situation clearly shows how dependent India is on imports for its energy needs and how vulnerable it can be to geopolitical turmoil in far-flung areas.
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