{"id":135311,"date":"2026-03-25T20:38:37","date_gmt":"2026-03-25T23:38:37","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/901748720"},"modified":"2026-03-25T20:38:37","modified_gmt":"2026-03-25T23:38:37","slug":"how-india-inc-is-tackling-fuel-freight-and-trade-disruptions-amid-west-asia-war","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/25\/how-india-inc-is-tackling-fuel-freight-and-trade-disruptions-amid-west-asia-war\/","title":{"rendered":"How India Inc is tackling fuel, freight and trade disruptions amid West Asia war"},"content":{"rendered":"<p> <title>How India Inc is tackling fuel, freight and trade disruptions amid West Asia war, ETManufacturing<\/title>                                                                      &lt;!&#8211;  &#8211;&gt; &lt;!&#8211;  &#8211;&gt; <!-- Google Tag Manager --><br \/>\n<!-- analytics_gtm_id to be passed dynamically per portal--> <!-- End Google Tag Manager -->    <\/p>\n<header class> <!-- For Accessiblity only --> &lt;!&#8211; <\/p>\n<div id=\"skiptocontent\" aria-label=\"skip content\"> <a href=\"#maincontent\" aria-label=\"skip main content link\">skip to main content<\/a> <\/div>\n<p> &#8211;&gt; <!-- Ads block --> <\/p>\n<section aria-label=\"Top Ads Block\" class=\" top-ads\"> <\/section>\n<p> <!-- Content Header with navigation --> <!-- To be implemented mobile view --> <!-- Mobile Header --> <!-- mobile callout section --> <!-- Top Header InPage Promos --> <\/header>\n<p> <!-- Include layout structure template --> <\/p>\n<div class=\"main-content\"> <main id=\"maincontent\" class=\"layout2\"><\/p>\n<div id=\"news_items_container\">\n<section class=\"container-mid article-section status_prime_article single-post currentlyInViewport inViewPort \" id=\"news_dtl_129779225\" data-article=\"0\" data-href=\"https:\/\/manufacturing.economictimes.indiatimes.com\/news\/industry\/how-india-inc-is-tackling-fuel-freight-and-trade-disruptions-amid-west-asia-war\/129779225\" data-msid=\"129779225\" data-mediaid data-authors=\"[\" data-author-list=\"Nisha Shukla\" data-category-name=\"Industry\" data-category_id=\"1155\" data-cat_msid=\"109570496\" data-date=\"2026-03-24\" data-index=\"article_1\" data-keywords=\"West Asia war, freight and trade disruptions, fuel disruptions amid West Asia war, FMCG, Godrej Industries, Godrej Industries\u2019 chemicals business, All India Plastics Manufacturers\u2019 Association, MSME\" data-type=\"news\">\n<div class=\"article-section__body \">\n<div class>\n<div class=\"article-section__body--top\">\n<div class=\"article-section__body__authors\">\n<div class=\"news-author-container\">\n<div class=\"author-image\"> <img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=75&resize=75&ssl=1 75w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=100&resize=100&ssl=1 100w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=150&resize=150&ssl=1 150w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=240&resize=240&ssl=1 240w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=320&resize=320&ssl=1 320w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=500&resize=500&ssl=1 500w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=640&resize=640&ssl=1 640w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=800&resize=800&ssl=1 800w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=1024&resize=1024&ssl=1 1024w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=1280&resize=1280&ssl=1 1280w, https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=1600&resize=1600&ssl=1 1600w\" loading=\"eager\" width=\"40\" height=\"40\" class=\"unveil check-user-initials user-init-cat\" fifu-data-src=\"https:\/\/manufacturing.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg\" data-src alt=\"Nisha Shukla\"> <\/div>\n<div class=\"author-section\">\n<ul>\n<li>Published On Mar 24, 2026 at 08:02 PM IST<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"article-section__body__news\"> <!-- Display video article in news article for the custom next story --> <!-- Modifying the body placing embeds,promoslots,related etc.--> <\/p>\n<figure class=\"img_container\">&lt;img width=&quot;590&quot; height=&quot;442&quot; class=&quot;unveil&quot; loading=&quot;eager&quot; src=&quot;https:\/\/manufacturing.economictimes.indiatimes.com\/images\/default.jpg&quot; data-src=&quot;https:\/\/etimg.etb2bimg.com\/photo\/129779560.cms&quot; captionrendered=&quot;1&quot; alt=&quot;<\/p>\n<p>From chemicals and plastics to packaging and FMCG, businesses are bearing the brunt of the West Asia war. <\/p>\n<p>&#8220;&gt;<figcaption class=\"caption\"><span>From chemicals and plastics to packaging and FMCG, businesses are bearing the brunt of the West Asia war. <\/span><\/figcaption><\/figure>\n<p>The fallout of the West Asia conflict is increasingly being felt across India\u2019s manufacturing sector. The disruption is now testing the resilience of factories, supply chains and balance sheets of domestic industries in India. <\/p>\n<p>Addressing the Lok Sabha on March 23, 2026, Prime Minister Narendra Modi described the escalating West Asian conflict as a \u201cworrisome situation\u201d, drawing parallels to the cooperation needed during the COVID-19 pandemic.<\/p>\n<p><!-- PROMOSLOT_M -->From chemicals and plastics to packaging and <a id=\"34523\" class=\"news-keywords\" href=\"https:\/\/manufacturing.economictimes.indiatimes.com\/tag\/fmcg\">FMCG<\/a>, businesses are bearing the brunt of the <a id=\"19242595\" class=\"news-keywords\" href=\"https:\/\/manufacturing.economictimes.indiatimes.com\/tag\/west+asia+war\">West Asia war<\/a>. \u201cAt a micro level, the biggest challenge for us has been natural gas. We depend heavily on it, and supply has been cut by nearly 50 per cent,\u201d said Vishal Sharma, CEO of <a id=\"22343152\" class=\"news-keywords\" href=\"https:\/\/manufacturing.economictimes.indiatimes.com\/tag\/godrej+industries%E2%80%99+chemicals+business\">Godrej Industries\u2019 chemicals business<\/a>.<\/p>\n<p>He said that the reasons range from logistical bottlenecks to shutdowns of critical gas facilities in the region. But the pressure doesn\u2019t end with energy. The ripple effects, especially on the logistics side. <\/p>\n<p><!-- PROMOSLOT_M -->\u201cFreight rates have increased substantially by over 50 per cent in some cases, and we are also seeing surcharges of thousands of dollars per container. Shipping lines are responding to the crisis quickly, just like they did during the pandemic and the Suez Canal crisis,\u201d Sharma added.<\/p>\n<p>\u201cWest Asia remains a vital trading partner, particularly for energy. There is an impact, especially on energy-intensive industries, but government support has helped keep cost increases relatively contained,\u201d said Saurabh Sanyal, secretary-general, ASSOCHAM.<\/p>\n<h3>A deeper strain beneath the surface<br \/><\/h3>\n<p>While fuel and freight are the most visible pain points, the more serious cracks are appearing in raw materials and in how they are being priced and supplied.<\/p>\n<p>\u201cManufacturers are struggling to get the specific grades they need because suppliers are holding back inventory,\u201d said Jayesh Rambhia, Director at the <a id=\"34458496\" class=\"news-keywords\" href=\"https:\/\/manufacturing.economictimes.indiatimes.com\/tag\/all+india+plastics+manufacturers%E2%80%99+association\">All India Plastics Manufacturers\u2019 Association<\/a>. Many suppliers, expecting prices to rise further, are choosing to wait.<\/p>\n<p><!-- PROMOSLOT_M -->That hesitation is driving prices up sharply. \u201cMaterial that used to cost \u20b9100 is now \u20b9180 to \u20b9200, and you have to pay upfront,\u201d Rambhia added. Credit, once a buffer for smaller firms, has largely disappeared.<\/p>\n<p>The result is a severe working capital crunch, particularly for MSMEs. According to Rambhia, more than half the plastics sector has effectively shut down, with the rest operating at just 25\u201330 per cent capacity. \u201cThis isn\u2019t a normal slowdown. It is a structural shock,\u201d he said. <\/p>\n<p><!-- PROMOSLOT_M -->By his estimate, close to a million jobs may already have been affected across India, especially in the plastics sector.<\/p>\n<h3>Panic-driven demand<br \/><\/h3>\n<p>The uncertainty is also changing behaviour across the supply chain.<\/p>\n<p>\u201cWe are seeing panic buying. Customers are buying 50 per cent to 100 per cent more than they normally would because they are concerned about a probable shortage. There are increases where there is no clear link to input costs. Some suppliers are simply raising prices,\u201d said Sharma. <\/p>\n<h3>Packaging caught in the middle<br \/><\/h3>\n<p>The impact of war is clearly evident on the packaging sector, as it sits at the intersection of multiple industries.<\/p>\n<p>\u201cSome high-performance grades, especially those used in bottle caps, are in short supply because they depend on imports from West Asia,\u201d said Thimmaiah Napanda P, Managing Director and CEO, Alternicq, a manufacturer of rigid plastic packaging.<\/p>\n<p>He said that not supplying packaging to <a href=\"https:\/\/manufacturing.economictimes.indiatimes.com\/tag\/fmcg\">FMCG<\/a> or pharma clients creates a much bigger problem downstream. Strong supplier relationships have helped firms like his secure limited materials in a tight market.<\/p>\n<p>Napanda said that resin prices went up as soon as crude prices went \u2014 about 2-3 weeks. He added that PET prices were up about 40 per cent, while PP and PE increased by 45\u201350 per cent. Some of the specialised grades have increased by as much as 70-80 per cent. For now, larger FMCG and pharmaceutical companies are able to absorb this increase, but in the long run, this may not be possible if volatility continues, he said.<\/p>\n<h3>Maritime woes <br \/><\/h3>\n<p>Disruptions in West Asia\u2019s shipping routes are adding another layer of complexity. Sanyal said that diversification is part of the answer. \u201cExpanding exports to Asian and other demand-driven markets can help reduce the impact,\u201d he said.<\/p>\n<p>\u201cIf material takes two months to arrive and prices fall in the meantime, the importer takes the loss,\u201d added Rambhia. <\/p>\n<h3>The wider impact, beyond factories <br \/><\/h3>\n<p>What is becoming clear is that the disruption is no longer limited to industries. \u201cPackaging is a vital component in the preservation of food. Without packaging, you begin to see a disruption in the supply chain,\u201d Rambhia added. <\/p>\n<p>Napanda said that this disruption is pushing companies towards scale, reliability and integration. Those who can ensure supply continuity are becoming strategic partners. <\/p>\n<h3>MSMEs facing the worst-ever brunt <br \/><\/h3>\n<p>Industry leaders are demanding that MSMEs be provided with easier access to working capital and a rationalised GST rate.<\/p>\n<p>\u201cWith inventory costs being double what they used to be and advance payments becoming the new norm, small players just don\u2019t have the money to cope. Plastic products are currently under an 18 per cent GST, but other alternatives are taxed at a much lower rate. Rationalising that will provide immediate relief, especially when raw materials have gone up exponentially,\u201d said Napanda. <\/p>\n<p>He also argues against the common perception of plastics being unsustainable. \u201cRigid plastics are recyclable, and in some cases, they even have a lower carbon footprint than materials like glass or ceramics,\u201d he said.<\/p>\n<p>\u201cMSMEs simply don\u2019t have the capacity to stock raw materials in advance, and delivering orders at old prices when costs have doubled is extremely difficult,\u201d Rambhia said.<\/p>\n<p>Even if geopolitical issues abate, a recovery will not be swift. \u201cIf the current situation continues, this quarter could be largely washed out. Supply chains are disrupted, exports are impacted, and visibility of demand is limited. It could take a couple of months for supply chains to normalise, and some of the price impacts could linger,\u201d he warned. <\/p>\n<p>The impact is already evident in reduced orders and declining demand. <\/p>\n<p>\u201cThis is not a crisis that the industry can solve alone. We need help to make sure that raw materials are available in reasonable supply and that this sector of the economy continues to function. This is an industry whose stability is an economic imperative,\u201d Rambhia added.<\/p>\n<p>While the voices are warning of the sector\u2019s quick comeback from the setback, on the flip side, there is a sense of cautious optimism that these disruptions could lay a foundation for a more resilient future. <\/p>\n<p>Greater localisation, diversified sourcing and stronger domestic capabilities may, over time, reduce dependence on volatile regions. As Napanda puts it, \u201cWhile it won\u2019t happen overnight, increasing localisation of specialised grades and diversifying sourcing will gradually reduce dependence on West Asia\u201d.<\/p>\n<p> <!-- Category Most Read Placement --> <\/p>\n<div class=\"bottom-author-detail-tag\">\n<div class=\"bottom-author-detail\">\n<ul class=\"article-publish-date\"> &lt;!&#8211; <\/p>\n<li> Updated On Mar 24, 2026 at 08:02 PM IST<\/li>\n<p> &#8211;&gt; <\/p>\n<li>Published On Mar 24, 2026 at 08:02 PM IST<\/li>\n<p> &lt;!&#8211; <\/p>\n<li class=\"desktop-view\">6 min read<\/li>\n<p> &#8211;&gt; <\/ul>\n<\/p><\/div>\n<\/p><\/div>\n<p> <!-- Comment Section --> <!-- Comment Section --> <\/p>\n<div class=\"subscription-in-article\">\n<div aria-label=\"Top Newsletter Subscription Section\" class=\"top-newsletter-subs\">\n<div class=\"subscription-section hide\">\n<div class=\"inner-subscription\">\n<p><h2>Join the community of 2M+ industry professionals. <\/h2>\n<h3>Subscribe to Newsletter to get 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https:\/\/i3.wp.com\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/manufacturing_barcode.png?mod=3212&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/manufacturing_barcode.png?mod=3212&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/manufacturing_barcode.png?mod=3212&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/manufacturing_barcode.png?mod=3212&ssl=1&w=1600&resize=1600&ssl=1 1600w\" loading=\"lazy\" width=\"90\" height=\"90\" fifu-data-src=\"https:\/\/i3.wp.com\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/manufacturing_barcode.png?mod=3212&ssl=1\" alt> &lt;!&#8211; <span class=\"border-bottom\"><\/span> &#8211;&gt; <\/figure>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p> <span id=\"etb2b-news-detail-page\" class=\"etb2b-module-ETB2BNewsDetailPage\" data-news-id=\"129779225\" data-news_link=\"https:\/\/manufacturing.economictimes.indiatimes.com\/news\/industry\/how-india-inc-is-tackling-fuel-freight-and-trade-disruptions-amid-west-asia-war\/129779225\"> <\/span> <!-- Next Story Placement --> &lt;!&#8211; <\/section>\n<p> &#8211;&gt;\n<\/p><\/div>\n<p><\/main> <!-- Footer Section -->  <!-- OneTrust Cookies Consent Notice start for auto.economictimes.indiatimes.com --> <!-- OneTrust Cookies Consent Notice end for auto.economictimes.indiatimes.com --> <\/div>\n<p>  &lt;!&#8211; &quot;logo&quot;: &quot;&#8221;, &#8211;&gt;<\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; , especially on the logistics side. \u00e2\u0080\u009c<span class=\"match\">Freight<\/span> rates have increased substantially &#8230; of dollars per container. <span class=\"match\">Shipping<\/span> lines are responding to &#8230; the surface While fuel and <span class=\"match\">freight<\/span> are the most visible pain &#8230; in West Asia\u00e2\u0080\u0099s <span class=\"match\">shipping<\/span> routes are adding another &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-135311","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/135311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=135311"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/135311\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=135311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=135311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=135311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}