Industrial firms reported stronger profit growth, supported by recovering manufacturing demand and targeted government stimulus measures aimed at stabilizing employment and consumption.

Analysts said sustained recovery would depend on external demand and confidence in the property sector, which continues to weigh on broader economic momentum.

.The unrest, now in its fourth day, has disrupted activity in one of Asia’s largest planned industrial townships, where thousands of manufacturing units operate. Protesters, many employed in small factories, have been demanding higher wages and improved labour conditions amid rising living costs linked to global supply disruptions.

Workers said their grievances include long working hours, unpaid overtime and lack of adherence to government labour guidelines. Vinay Mahoti, a worker from Bihar employed in a hosiery unit, said demonstrations that began within factory premises spread to the streets as employees from multiple companies joined in.

Visuals showed protesters marching, chanting slogans and clashing with security personnel, with some overturning vehicles and setting them on fire while others hurled stones at barricades.

Local police said they were attempting to restore order using limited force. “Senior police and administrative officials are making persistent efforts to counsel the workers and urge them to maintain peace and restraint,” the Gautam Budh Nagar police said in a statement.

Narendra Kashyap called on demonstrators to engage in dialogue with authorities, urging a peaceful resolution to the dispute.The protests follow similar labour unrest in the neighbouring state of Haryana last week, where the government responded to worker demands by ordering a 35% increase in minimum wages.

Rising inflation and cost pressures, partly driven by global energy disruptions linked to the ongoing Middle East conflict, have intensified economic strain on industrial workers, contributing to growing unrest in key manufacturing regions.

The state government said wages for unskilled workers would rise to about $165 per month from roughly $120, effective April 1, marking the first such policy move in response to the economic fallout from the ongoing U.S.-Israel-Iran war.

The decision followed clashes between police and workers in Manesar, located near New Delhi and home to major manufacturing facilities including Maruti Suzuki and numerous supplier units. Authorities urged workers to resume duties peacefully after the announcement.

Workers said surging food prices, driven by disrupted gas supplies, had strained household budgets. India, the world’s second-largest importer of liquefied petroleum gas, is facing one of its most severe supply disruptions in decades, prompting the government to prioritize household consumption over industrial use.

The wage hike is expected to ease pressure on workers but add to cost burdens for automakers already grappling with higher raw material prices. Companies such as Tata Motors and Mahindra & Mahindra have raised vehicle prices, while Maruti has indicated similar steps may follow.

Industrial activity in Manesar was partially disrupted as workers boycotted shifts and staged protests. Employees reported that food costs had nearly doubled, with some migrant workers returning to their home villages due to rising expenses and uncertain supplies.

Suppliers including Munjal Showa said production was affected, while firms such as Roop Polymers reported limited disruption and a return to normal operations after the protests subsided.India’s auto sector relies heavily on migrant labor, with millions traveling to industrial clusters for work.

Industry groups warned that retaining workers has become a priority, with some companies offering meals and bonuses to prevent further departures.

Executives said supply chains could take weeks to stabilize even if geopolitical tensions ease, as disruptions to energy supplies continue to ripple through manufacturing and labor markets.

Speaking at the annual China Development Forum in Beijing, Li said China would expand imports of high-quality foreign goods and work with trading partners to promote more balanced global trade, according to state media.

Li’s remarks come as China faces mounting concerns from major economies, particularly the United States and the European Union, over its trade practices, industrial overcapacity and reliance on Chinese exports.

While he did not directly reference the record surplus, his comments indicated an effort to address imbalances that have strained international economic relations.The forum, which brings together foreign business leaders, policymakers and economists, is a key platform for Beijing to outline its economic priorities and signal openness to global investors.

In a separate address, central bank governor Pan Gongsheng said assessments of global imbalances should account for both goods and services trade, as well as financial flows. He noted that while China runs the world’s largest goods surplus, it also posts the largest services deficit.

Pan added that China does not intend to gain a competitive trade advantage through currency depreciation, responding to longstanding concerns from trading partners over exchange rate policies.

Beijing is also attempting to reverse a decline in foreign direct investment, which fell 5.7% year-on-year to just over 92 billion yuan ($13.36 billion) in January, following a 9.5% drop in 2025.

In December, authorities expanded incentives for foreign investors by adding 200 sectors eligible for benefits such as tax breaks and preferential land use, focusing on areas including advanced manufacturing and modern services.

Efforts to stabilise trade ties come as geopolitical tensions persist. U.S. President Donald Trump recently postponed a planned visit to Beijing to meet President Xi Jinping due to the Iran conflict, delaying talks aimed at easing economic tensions between the two countries.