IMPACT OF MIDDLE EAST COUNTRYIES CONFLICTS ON INDIAN SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

WRITTEN BY: BATCHU MANI VAIBHAV

INTODUCTION

The middle east plays a crucial role in global trade and especially India depending up on using strait of Hormuz for Indian exports of crude oil and gases. Any disruption in this region whether political, economic, military will directly affect India’s supply chain and even it Directly effects in inflation of crude oil, gases prices in India

Due to this overall supply chain of Indian market will collapse and will faces surges in pricing most of the commodities in India. India relies on middle east countries for roughly around 60% of its crude oil and 68% of its LNG and other chemicals

Key disruptions effecting Indian supply chain management

1. ROUTE CRISIS: These geopolitical problems in the Red Sea, Suez Canal, strait of Hormoz have led big shipping companies altering their routes, opting for longer routes towards Africa, thus leading to an extra 10 to 15 days in travel duration and high expenses.

As a result, it had affected in multiple ways to us

· Freight costs of shipments have been drastically increased effecting Indian market

· Delivery schedules have been delayed and which made unavailability of many products

· Exporting of Indian products to middle east countries has become an economic crisis for India

2. INCREASE IN CRUDE OIL AND GASES PRICES IN INDIA: Conflicts between Middle East countries had lead inflation of global oil

· Due to increase in Transportation costs increase the overall cost of the crude oil and other products cost has gradually increased

· Even for middle east countries due ongoing issues production costs for industries has been gradually increased

· Due to these aspects Inflation of Indian economy has increased and even at present the dollar value has been increased to 94.72 INR per dollar

3. CURRENCY FLUCTUATIONS AND ECONOMIC INSTABILITY: Conflicts arrived due to middle east countries and USA had led in downfall of currency exchange rates and financial markets. Where at present Indian rupee has seen sudden down fall to 94.72 which has significantly affected our economy

· Significantly effected to increase in import bills of our country

· There is a huge Uncertainty in pricing and contracts of major business in India

· At present India is been facing a huge financial planning challenges due to the ongoing issue and even not clear about future challenges

4. INDUSTRIES EFFECTED: major industries effected in India are Pharmaceutical Industry, Automobile Industry, FMCG Sector, Textile Industry due to many reasons

· Due to Shortage of components from other countries

· Increased production cost

· Increased production cost

CONCLUSION: Middle East conflicts had created multiple disruptions in Indian supply chain management, including rising costs, delays, increased risks, and uncertainty. Since India heavily depends on this region for energy and trade routes, any instability directly impacts supply chain performance. To overcome these challenges, Indian companies must focus on diversification, risk management, and building resilient supply chains. Adopting advanced technologies and alternative trade routes will be essential for ensuring long-term sustainability.