Ongoing Middle East war hits production in India's industrial clusters
India's major industrial clusters, including Surat, Morbi, Navi Mumbai, and Kanpur, have hit a rough patch this spring.
Thanks to the ongoing war in the Middle East, factories have faced big supply chain issues and weaker demand.
Satellite data even shows a sharp drop in nitrogen dioxide emissions, a clear sign that production has taken a hit compared with last year.
Morbi, Surat, Kanpur industrial output declines
Morbi's ceramic industry saw more than one-half of its factories close for a month due to fuel shortages.
Surat's textile units dealt with rising costs and unpredictable demand, while Kanpur's industries cut output by up to 50% as fuel prices soared and export orders dried up.
While businesses are working on bouncing back, they are still wrestling with resource shortages and less demand, reminding us how global conflicts can really shake up local economies.