CII: Indian Firms Face Shipment Delays & Raw Material Shortages

West Asia Conflict Disrupts Indian Supply Chains, CII Flags Shipment Delays and Raw Material Shortages​

New Delhi, March 22: Indian companies are witnessing supply chain disruptions, including shipment delays and shortages of key raw materials, due to the ongoing conflict in West Asia, the Confederation of Indian Industry (CII) said on Sunday.

Maritime Disruptions and Supply Chain Pressure Intensify​

CII Director General Chandrajit Banerjee stated that businesses are already facing downstream impacts as the conflict affects critical maritime routes and tightens global trade flows.

He said companies are encountering delays in shipments, constraints in energy inputs, and emerging shortages of essential raw materials and intermediates across sectors that depend on timely cross-border movement.

The industry body noted that these disruptions are exerting pressure on global supply chains and energy markets, while also affecting both imports and exports. The ripple effects are being felt across manufacturing and other trade-dependent industries.

Energy Markets and Trade Flows Under Strain​

Banerjee highlighted that the conflict has impacted key maritime channels, leading to broader stress across global supply networks. This has contributed to volatility in energy markets and created challenges for industries reliant on steady input supplies.

India Positioned Stronger to Absorb External Shocks​

Despite the ongoing challenges, CII emphasized that India is in a stronger position compared to previous global disruptions. Banerjee said the country has entered this phase from a position of strength, supported by structural reforms and the Atmanirbhar Bharat initiative, which has enhanced domestic resilience.

Government Measures Aim to Stabilize Impact​

According to CII, the government has responded with a series of timely and calibrated measures. These include diversification of crude oil sources, maximisation of LPG production, export facilitation, and efforts toward currency stabilisation.

Industry Adapting Through Diversification and Efficiency​

The industry is actively adapting to the evolving situation by accelerating energy diversification, optimising supply chains, and safeguarding employment.

CII also stressed the importance of continued investments in renewable energy, green hydrogen, biofuels, and energy efficiency. These were identified as key strategies to reduce exposure to geopolitical risks linked to energy dependence.

Outlook Remains Cautiously Optimistic​

While acknowledging the scale of the disruption, CII expressed confidence in India’s ability to navigate the crisis. The industry body noted that coordinated efforts between the government and stakeholders are expected to help sustain economic momentum and protect national interests amid the ongoing global uncertainty.