NEW DELHI
Businesses across India are facing growing pressure from disruptions to energy supplies linked to the Middle East conflict, with industry groups warning of shortages while the government says stocks remain sufficient.
Regional escalation in the Middle East has continued since the US and Israel launched a joint offensive on Iran on Feb. 28, disrupting key shipping routes and energy infrastructure and pushing up prices for oil, gas and fuel, raising fears of shortages, inflation and a renewed cost-of-living crisis across South Asia.
In India, hoteliers and restaurant operators in several parts of the country say they are facing shortages of cooking gas and are urging authorities to ensure uninterrupted fuel supplies.
New Delhi has asked officials to “ensure equitable distribution and continued availability” of natural gas for priority sectors.
Narayan Gowda, president of the Mysuru District Hotel Owners Association in southern India, told Anadolu that shortages of commercial cylinders have forced several hotels and related outlets to close.
“There is a shortage reported and the government must ensure the continuous supply,” he said, adding that more than one million people in Karnataka state depend on the hospitality sector for their livelihoods.
India imports around 50% of its energy needs, worth about $180 billion in 2024, from Middle East countries.
Impacts are also being reported in other sectors.
In Gujarat’s Surat, where about 90% of the world’s rough diamonds are cut and polished before export, industry representatives said ongoing conflicts — including the wars in Ukraine and Gaza and now the war involving Iran — are putting additional pressure on the sector.
“Our main markets are the US, Israel and Dubai … if the war prolongs, things will be very bad,” said Ramesh Jilariya, president of the Gujarat Diamond Workers Union, told Anadolu.
He said workers associated with the industry are also reporting shortages of gas cylinders.
“We are requesting the government to ensure the supply, so that other workers will leave for their hometowns,” he said.
Long queues outside fuel stations
Long queues were reported outside fuel stations in several parts of the country as residents resorted to panic buying.
Officials, however, said stocks remain sufficient and blamed “misinformation” for the rush.
The Indian government on Thursday urged citizens not to be “misled by a deliberately mischievous, coordinated campaign of misinformation” aimed at spreading “unjustified panic.”
Officials also said supplies of liquefied natural gas have been affected by the geopolitical situation but added that no dry-outs have been reported so far.
Significant pressure on medical sector
The Association of Indian Medical Device Industry said this week that “significant pressures” have emerged in the medical-device manufacturing sector due to tensions around the Strait of Hormuz and the wider regional escalation.
“These developments are sharply increasing input costs and straining working capital for manufacturers of essential medical disposables,” the body said.
Regional escalation has continued since the US and Israel launched a joint offensive on Iran on Feb. 28, which has so far killed more than 1,340 people, including then-Supreme Leader Ali Khamenei.
Tehran has retaliated with drone and missile strikes targeting Israel as well as Jordan, Iraq and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.
Iran has maintained effective control of the Strait of Hormuz, a critical passage through which much of the energy shipped to Asian countries passes.
According to a statement attributed to Abbas Araghchi, Tehran has allowed passage through the Strait of Hormuz for “friendly nations including China, Russia, India, Iraq, and Pakistan,” the Iranian diplomatic mission in Mumbai said on US social media company X.