War shockwaves choke supply chains, hit India’s core industries

The ripple effects of the escalating conflict in West Asia are beginning to weigh heavily on India’s manufacturing backbone, with multiple sectors reporting disruptions as supply chains falter and costs surge.

From steel and aluminium to textiles and alcoholic beverages, companies are grappling with a fresh wave of uncertainty triggered by rising freight rates, shipment delays, gas shortages and payment bottlenecks. At the centre of the disruption lies the closure of the Strait of Hormuz, a critical global trade artery, which has choked cargo movement and slowed imports.

Industry players say consignments are now stuck at multiple points across the supply chain, threatening to push up operational costs and forcing firms to consider curtailing production hours if the situation persists.

A Mumbai-based textile manufacturer was quoted as saying by The Indian Express that it is already staring at a severe raw material crunch, with inventory levels down to just 30 days. The crisis stems from delayed shipments of flax — a key input sourced from Europe, particularly Belgium and France — that have been caught in the wider fallout of the conflict.

“One of our consignments has been stranded in Jebel Ali for the past 20 days. It arrived on February 28, and we still have no clarity on when it will reach India,” a senior executive said, requesting anonymity.

The uncertainty is compounded by additional shipments currently in transit. While one consignment bound for Al-Faqan on the eastern side is expected to avoid major disruption, another headed to Khalifa port faces a more precarious route through the Strait of Hormuz.

If the shipments do not arrive within the next 10 days, the executive warned, the company could run out of critical raw materials — a scenario that could disrupt production schedules and ripple across downstream markets.

As the West Asia conflict continues to disrupt key trade routes, Indian manufacturers are bracing for prolonged volatility, with supply chain stress now translating into real economic strain on the ground.