MP’s ‘Detroit’ faces crisis amid ongoing war:Over 20,000 workers unemployed, questions raised on govt’s crisis management

The ongoing tensions involving Iran, Israel, and the United States have begun to visibly impact Pithampur—often referred to as Madhya Pradesh’s “Detroit.” Industrialists warn that if the situation does not improve soon, the coming months could be extremely challenging for both industries and workers. Exports halted, production cut According to Dr. Gautam Kothari, President of the Pithampur Industrial Association, exports from the region have nearly come to a standstill. Rising raw material costs and a global shipping crisis have forced manufacturers to scale down production. This has directly impacted employment, with factories reducing shifts and several units nearing shutdown. Over 20,000 workers lose jobs The worst affected are temporary workers. Estimates suggest that over 20,000 contract laborers have already lost their jobs. Several companies have also placed permanent employees on layoffs, offering only half salaries. Workers struggle with rising costs Labour contractor Saddam Patel said workers, many of whom come from outside Pithampur, rely on small gas cylinders for daily needs. Due to disrupted supply, gas prices have surged, making even a ₹300 refill unaffordable for many. Factories shut, workers sent home Nitesh Baghel, a worker in a plastic factory in the SEZ sector, said, Work has been halted for the past five days due to rising plastic raw material costs. We have been laid off. He added that while women in his household are still getting temporary packaging work in textile units until April 10, the family plans to return to their village once that work ends. Industry body slams government response Officials from the Pithampur Industrial Association criticized the government’s handling of the crisis. They said industries contribute significantly through taxes and GDP and expect support during difficult times. However, they allege that no effective crisis management measures have been implemented so far. “Simply reducing gas supply is not crisis management. Real management would involve aligning resources with industrial needs. Ignoring the problem is like harming oneself,” an official said. A key industrial hub under stress Pithampur is considered the industrial engine of Madhya Pradesh, housing over 5,600 units across sectors such as auto components, pharmaceuticals, plastics, textiles, and engineering. The SEZ here used to generate exports worth millions of dollars every month, supplying products to markets in the US, Europe, and the Middle East. However, tensions around the Strait of Hormuz and the Suez Canal have sharply increased freight costs—by nearly five times—while insurance premiums have surged significantly.