Reported by U.S. broadcaster CNBC on the 9th, since the outbreak of the U.S.-Israel-Iran conflict, India’s textile and apparel exports have fallen into fresh turmoil amid sharp rises in raw material and packaging costs.

Mr. Bagharia, Chairman of Filatex India Limited, a major Indian manufacturer of synthetic fibers and polyester filament yarns, told CNBC that polyester fiber, a key textile raw material, has surged in cost by more than 40% since the conflict began. Slumping demand will force manufacturers to cut production.

Filatex has already reduced output by 25% and is anxiously waiting for a demand rebound.

Affected by the Middle East conflict, India’s liquefied petroleum gas (LPG) supplies have been severely disrupted. LPG is a critical fuel for India’s textile industry. Around 60% of India’s LPG is imported, and 90% of those imports pass through the Strait of Hormuz.

Japan’s NHK cited the Gujarat Textile Processors’ Association in reporting that in Surat, a key textile hub in India, roughly half of the local 200 textile mills have suspended operations due to LPG shortages. Factories still running have cut working hours from seven days a week to five. Around 500,000 informal textile workers have lost their jobs and left Surat.

Mr. Vakharia, President of the Association, stated that even if the U.S.-Israel-Iran conflict ended immediately, it would take six months to a year for the textile industry to return to normal, and shortages of raw materials and finished textiles would persist.

A Surat mill owner said his plant consumes 13.2 tons of LPG monthly. The fuel shortage forced a one-month shutdown and layoffs of more than half of its casual laborers. The factory is now hoping for government support.

Moreover, LPG is widely used for household cooking in India, so the Indian government typically prioritizes residential needs over industrial consumption.

CNBC noted that without lasting peace, Indian textile exporters face an existential challenge rather than growth.

India is the world’s sixth-largest textile exporter. The textile industry is the second-largest employer in the country, supporting more than 45 million jobs nationwide.

From April last year to February this year, India’s textile and garment exports reached $29.5 billion, slightly down from $29.8 billion in the previous year. While the decline is modest, the weak export growth trend is worrying.

India previously set a target to achieve annual textile exports of over $100 billion by 2030. Given current export levels and growth momentum, reaching this ambitious goal poses enormous challenges.

A team led by Goldman Sachs analyst Georgina Fraser warned clients on Monday that the petrochemical shock across Asia is intensifying, with textile and packaging plants among the first major downstream casualties.

Supply disruptions have spread from rising energy prices to production cuts, compressed profit margins, and premature demand contraction.

In the apparel and textile sector, petrochemical-related inputs account for 50% to 65% of cost of goods sold. Recent volatility in raw material spot prices implies a 17% impact on production costs — enough to force less efficient factories to close.

Last month, JPMorgan commodity experts predicted a “domino effect” from the energy shock: Asia would bear the brunt (now unfolding), followed by Africa and Europe, and eventually the United States.