west-asia-conflict-indian-companies-facing-shipment-delays

Indian companies are grappling with disruptions such as shipment delays and shortages of crucial raw materials amid the ongoing conflict in West Asia, the Confederation of Indian Industry (CII) said on Sunday, pointing to increasing strain on sectors reliant on global trade networks.
In a statement, CII Director General Chandrajit Banerjee noted that firms are already witnessing ‘downstream effects’ as the conflict disturbs key maritime routes and tightens global supply chains.

“Indian companies are experiencing downstream effects, ranging from shipment delays to constraints in critical energy inputs, along with emerging shortages of essential raw materials and intermediates across multiple sectors that depend heavily on timely cross-border flows,” he said.

The industry body added that these disruptions have also put pressure on energy markets and trade flows, impacting both imports and exports, with cascading effects across manufacturing and other industries.

 

Also read: Airlines free to set fares as Govt ends price caps from tomorrow

“The conflict in the Middle East has disrupted vital maritime routes and exerted pressure on global supply chains, energy markets and trade activities, including imports and exports,” Banerjee said.

Despite these growing challenges, CII emphasised that India is better positioned than before to absorb external shocks. Banerjee highlighted that the country has entered this phase ‘from a position of strength’, backed by structural reforms and the government’s push for Atmanirbhar Bharat, which has enhanced domestic resilience.

The industry body also described the government’s response as ‘swift, calibrated and continuous’, citing steps such as diversification of crude oil sources, increased LPG production, export facilitation and measures to stabilise the currency.

According to CII, Indian industry is responding to the disruptions by accelerating energy diversification, streamlining supply chains, and safeguarding employment.

It further stressed the importance of sustained investments in renewable energy, green hydrogen, biofuels and energy efficiency, describing them as strategic priorities to reduce vulnerability to geopolitical energy shocks.