West Asia Conflict: Indian Cos Facing Shipment Delays, Key Raw Material Shortages, Says CII

Indian companies are facing disruptions ranging from shipment delays to shortages of key raw materials due to the ongoing West Asia conflict, the Confederation of Indian Industry (CII) said on Sunday, highlighting growing stress across sectors dependent on global trade flows.

In a statement, CII Director General Chandrajit Banerjee said firms are already seeing "downstream effects" as the conflict disrupts key maritime routes and tightens global supply chains.

"Indian companies are experiencing downstream effects, from shipment delays to constraints in key energy inputs, as well as emerging shortages in essential raw materials and intermediates across several sectors that rely heavily on timely cross-border flows," he said.

The industry body noted that disruptions have also placed pressure on energy markets and trade, affecting both imports and exports, with ripple-effects being felt across manufacturing and other industries.

"The conflict in the Middle East has disrupted critical maritime routes and placed pressure on global supply chains, energy markets, and both imports and exports," Banerjee stated.

Despite emerging challenges, CII underscored that India is better placed than in the past to absorb external shocks.

Banerjee said the country entered this phase "from a position of strength", supported by structural reforms and the government's push for Atmanirbhar Bharat, which has strengthened domestic resilience.

The industry lobby said the government's response has been "quick, calibrated and continuous", with measures, including crude oil diversification, maximisation of LPG production, export facilitation and currency stabilisation.

According to CII, the Indian industry is adapting to the shocks by accelerating energy diversification, optimising supply chains and protecting jobs.

CII also highlighted the importance of ongoing investments in renewable energy, green hydrogen, biofuels, and energy efficiency, calling them strategic imperatives to reduce vulnerability to geopolitical energy shocks.

While the situation remains challenging, we are confident that the government's approach, combined with its partnership-driven engagement with all stakeholders, will help India withstand this shock and preserve its forward-economic momentum, Banerjee stated.

The industry lobby observed that the challenge is significant but so is India's capacity to respond proactively, securing all its interests.