Gurugram : Escalating geopolitical tensions in West Asia, particularly the ongoing Iran crisis, coupled with soaring international crude oil prices, are creating serious concerns for India’s industrial and economic sectors. According to Deepak Maini, Chairman of the Progressive Federation of Trade and Industry, the growing global instability and sharp rise in production costs are placing immense pressure on the Indian economy, with clear signs of an economic slowdown now becoming visible across several industries.
Maini stated that prices of key industrial raw materials such as iron, steel, aluminum, copper, brass, and carbide have surged between 15 and 35 percent over the past few months. This sharp increase has significantly disrupted cost structures in the automobile, engineering, construction, and machinery sectors. He added that rising raw material prices are increasing manufacturing costs for cars, commercial vehicles, and two-wheelers, making further vehicle price hikes likely in the near future.
He noted that before the current geopolitical tensions escalated, global supply chains had started stabilizing and India’s economy was showing strong momentum, largely driven by exports.
During the financial year 2024-25, India’s total exports reportedly touched nearly $770 billion, with strong demand across engineering goods, auto components, electronics, and manufacturing sectors. However, rising sea freight charges, insurance costs, and import expenses are now creating fresh challenges for industries.
Maini further highlighted that India imports nearly 85 percent of its crude oil requirements, and international crude oil prices crossing the $100-per-barrel mark are directly impacting domestic petrol and diesel prices. Higher fuel costs have sharply increased transportation, logistics, and supply chain expenses, affecting almost every industry and consumer product category.
He also pointed out that rising inflation and economic uncertainty are forcing consumers to postpone major spending and investment decisions. This trend is particularly impacting the automobile and real estate sectors. A slowdown in industrial production and investment, he warned, could negatively affect job creation and market demand, potentially deepening the economic slowdown.
According to Maini, industries, investors, and consumers must adopt a cautious approach while making financial decisions under the current global circumstances. He warned that if the Iran crisis continues and crude oil prices remain elevated, the impact could extend beyond industrial production and significantly affect India’s economic growth, consumer demand, real estate investment, and employment generation.
He urged the Central Government to take immediate measures to support industries by controlling energy costs, strengthening exports, improving logistics support, and providing relief in interest rates to maintain the competitiveness and stability of Indian industries during this challenging global situation.