Amid heightened geo-political tensions, the Confederation of Indian Industry (CII) has highlighted growing stress across sectors dependent on global trade flows and said that Indian companies are facing disruptions ranging from shipment delays to shortages of key raw materials due to the ongoing West Asia conflict. 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.

CII Director General Chandrajit Banerjee said firms are already seeing ‘downstream effects’ as the conflict disrupts key maritime routes and tightens global supply chains. Banerjee stated ‘The conflict in the West Asia has disrupted critical maritime routes and placed pressure on global supply chains, energy markets, and both imports and exports’.

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.

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