Gulf War Disruptions Hit India’s Glass Industry and Exports
India’s glass manufacturing hub of Firozabad, known as the country’s “Glass City,” is facing a severe slowdown as the ongoing Middle East conflict disrupts gas supplies and raises energy costs. Glass furnaces, which must operate continuously at extremely high temperatures, are shutting down due to fuel shortages, leaving thousands of workers without jobs during what is usually the peak production season. The crisis highlights India’s heavy dependence on gas supplies and its vulnerability to global energy shocks.
The impact extends beyond glassmaking, affecting textiles, machinery, and auto parts industries as rising shipping and insurance costs disrupt exports. Manufacturers report stranded containers at ports and freight charges surging sharply, with shipping costs to Europe rising by more than 60%. Exporters say production schedules for major international orders, especially for Christmas and seasonal markets, have been severely disrupted as shipments decline and uncertainty grows.
The slowdown poses a challenge to the government’s goal of increasing manufacturing’s share of GDP from about 17% to 25%. Industry groups warn that prolonged disruptions could threaten thousands of small businesses and jobs nationwide, with rising energy and logistics expenses squeezing profit margins. Economists caution that India remains among the most vulnerable Asian economies to disruptions in Gulf shipping routes and gas supplies if the conflict continues.
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