Pakistan, May 22 -- The ongoing conflict in the Middle East is placing increasing pressure on India's labour market, disrupting overseas employment opportunities and weakening demand for the country's manufactured exports.

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For decades, millions of Indian workers have relied on jobs in Gulf countries, while industries such as leather, garments and glass manufacturing benefited from strong global demand. However, the regional conflict has created economic uncertainty, forcing many migrant workers to return home and leaving export-driven businesses struggling with rising costs and slowing orders.

In the industrial city of Kanpur, leather manufacturers say higher fuel, shipping and lo...