Strait of Hormuz tensions push Indian businesses' shipping costs higher
Tensions in the Strait of Hormuz are making it way more expensive for Indian businesses to ship goods.
Freight rates and war-risk surcharges have pushed costs up by 35% to 50%, and some shipments are even seeing price jumps of more than 200%.
Sending goods to Europe or the Gulf is now thousands of dollars pricier, forcing companies to rethink their contracts.
Indian industries face higher input costs
India's gas supply has dropped by 25%, making production costlier for industries like fertilizers and metals.
Petrochemical output is down 21%, so raw materials like polypropylene and PVC are getting more expensive.
Textile exporters are dealing with freight hikes up to 300% and delays that can stretch nearly 10 weeks.
To cope, businesses are stockpiling essentials and rerouting shipments, but all these extra costs will likely trickle down to consumers.