The ongoing crisis in West Asia is beginning to affect India’s manufacturing sector, with fuel shortages and supply disruptions impacting production across several industries.
Companies ranging from large manufacturing firms to micro, small and medium enterprises (MSMEs) are facing mounting operational challenges. Industry sources say several gas-dependent factories have already reduced production by up to 30 per cent compared to pre-war levels due to limited fuel availability and delays in cargo shipments carrying raw materials.
Manufacturers are also struggling to maintain daily operations as the shortage of fuel has disrupted not only industrial processes but also logistical support within factory premises. In some cases, companies are finding it difficult to arrange regular food supplies for employees working at production units.
According to Abhyuday Jindal, Managing Director of Jindal Stainless, the stainless-steel industry has been particularly affected because of its dependence on industrial gases such as propane, LPG and natural gas.
He explained that unlike the conventional steel industry, which uses blast furnace and coke oven gases as internal energy sources, stainless steel manufacturing follows a scrap-based production route. This process does not generate industrial gases internally, making the sector heavily reliant on external fuel supplies.
“With constraints in fuel availability, our plants are currently operating at a rationalized capacity,” Jindal said.
Industry experts warn that if the fuel supply disruption continues, more manufacturing units across India may be forced to scale down production further, potentially affecting supply chains and market availability of several products.
War in West Asia begins to affect Indian manufacturing units
