Indian companies are facing supply-chain disruptions ranging from shipment delays to shortages of key raw materials due to the ongoing conflict in the Middle East, the Confederation of Indian Industry (CII) said on Sunday, highlighting rising stress in sectors dependent on global trade flows.In a statement, CII director general Chandrajit Banerjee said, as quoted PTI, firms are already witnessing “downstream effects” as the conflict disrupts key maritime routes and tightens supply conditions across global markets.
“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,” Banerjee said.The industry body noted that disruptions have also placed pressure on energy markets and trade, affecting both imports and exports and creating ripple-effects across manufacturing and allied 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 added.Despite the emerging challenges, CII said India is better positioned than in the past to absorb external shocks. Banerjee noted that the country entered this phase “from a position of strength”, supported by structural reforms and the government’s Atmanirbhar Bharat push, which has strengthened domestic resilience.The industry lobby described the government’s response as “quick, calibrated and continuous”, citing measures such as diversification of crude oil sourcing, maximisation of LPG production, export facilitation and currency stabilisation.According to CII, Indian industry is adapting to the shocks by accelerating energy diversification, optimising supply chains and protecting jobs.It also highlighted the importance of continued 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 said.CII observed that the challenge is significant but so is India’s capacity to respond proactively and secure its economic interests.