New Delhi, Apr 14 (KNN) Rising input costs triggered by the ongoing West Asia conflict are placing significant pressure on India’s manufacturing sector, particularly micro, small and medium enterprises (MSMEs), with industry bodies warning of shrinking margins and potential shutdowns.
Industrial Clusters Witness Sharp Price Rise
Industrial clusters such as Ludhiana have reported sharp increases in the prices of key raw materials, including steel, plastics, rubber and chemicals, driven by supply chain disruptions and volatility in global commodity markets, reported The Times Of India.
President of Federation of Indian Export Organisations, SC Ralhan, said steel prices have risen by nearly Rs 3,000 per tonne over the past year, eroding profitability for manufacturers in sectors such as auto components, engineering goods and fabrication.
Export Units Face Logistics and Cost Pressures
Export-oriented units are also facing disruptions in shipping and logistics, with delayed consignments, labour shortages and rising freight costs impacting production schedules. Input costs in some sectors have increased by 15-20 percent, further straining operations.
The impact extends to downstream industries, including bicycles and printing, where manufacturers have announced price hikes due to increased costs of petroleum-based inputs such as inks, adhesives and laminates. Production costs in the printing sector alone have risen by 30-40 percent.
MSMEs Struggle to Pass on Costs
Manjinder Singh Sachdeva, general secretary of FICO, cautioned that many MSMEs are unable to pass on higher costs to consumers due to competitive market conditions, raising concerns over business sustainability.
He called for government intervention, including price stabilisation measures and financial support, to prevent large-scale disruptions.
The ongoing geopolitical tensions have highlighted the vulnerability of domestic manufacturing to global supply shocks, particularly in sectors dependent on imported raw materials and energy inputs.
(KNN Bureau)
