Disruptions in fuel supply, fractured supply chains, and escalating raw material expenses—all linked to the West Asia conflict—are taking a substantial toll on industries across Haryana. The ramifications span multiple sectors, pushing numerous small and medium enterprises (SMEs) to the brink of ceasing operations.
Reports indicate a severe crunch in the availability of commercial LPG cylinders, directly impacting over 100 footwear manufacturing units in the Bahadurgarh area. Narinder Chhikara, senior vice-president of the Bahadurgarh Chamber of Commerce and Industries, noted the outright shutdown of these businesses due to this specific shortage. Across Faridabad, Raj Bhatia, president of the Faridabad Industrial Association, highlighted that an estimated 15,000 MSMEs involved in the automotive, garment, and footwear sectors are grappling with disrupted supplies of essential fuels like LPG and CNG. Manoj Arora, secretary of the Haryana Chamber of Commerce and Industry (HCCI), voiced concerns that a significant number of these businesses are now facing the prospect of operational closure.
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The ripple effect of the West Asia conflict extends beyond fuel. Industries are experiencing increased costs for packaging and raw materials. While entities with established, long-term contracts with packaging providers are somewhat buffered, those relying on spot purchases are confronting considerably higher price volatility. This scenario is not confined to crude oil and natural gas; a broader array of critical goods is facing supply chain interferences and availability issues in India.
The automotive sector, while not directly sourcing a large volume of parts from the West Asia region, faces potential disruption due to the region's significant output of key materials. Countries like Bahrain and the United Arab Emirates are notable producers of aluminum. The conflict's potential to create bottlenecks for these fundamental components, essential for manufacturing parts, is a growing concern for automakers and their suppliers. This material cost increase has already manifested in price hikes for some commodities.
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The initial budgetary allocation for fertilizer subsidies in the current fiscal year stood at ₹1.67 lakh crore. For the upcoming fiscal year (FY27), the Centre has earmarked ₹1.71 lakh crore, a slight reduction from the ₹1.86 lakh crore allocated for the current fiscal. This context, while separate from direct industrial manufacturing, speaks to the broader economic pressures influencing commodity markets and government expenditure.