West Asia war: Punjab industry hit by labour shortage, rising costs
Bicycle manufacturer and exporter Hero Ecotech, which supplies international buyers such as Walmart, Decathlon and Disney, has switched from diesel to diesel due to unavailability of industrial gas.
Gaurav Munjal, managing director of Hero Ecotech, said that this move has increased the company’s costs. “Unavailability of LPG and expensive components were a problem in March… We cannot transfer the price burden on the export market as they have options.”
The company produces 200,000 bicycles at its Ludhiana factory, of which around 60% are exported to the US and Europe. Moreover, the input costs of plastic, rubber, tiles and steel pipes have increased by around 50-60% in 2025-26.
Ludhiana-based garment manufacturer Eveline International, whose clients include Pepe Jeans, Benetton and Faherty, said US tariffs and now the war have created difficulties for businesses. “Orders are pending. There is uncertainty everywhere,” said Eveline International director Deepak Dumra.
Exporters are hopeful that the West Asian conflict will be resolved. This is of vital importance for India, which is largely dependent on the Strait of Hormuz for its crude oil imports and energy security.
Manufacturers said business would take a serious hit if the US-Israeli war against Iran continues for a few more weeks. Amritsar-based rice exporter DRRK Foods, which processes basmati rice, said it could not export to the region in March due to the war. “We export around 80% of our products and the Middle East is our largest market. There is a 20-25% drop in shipments. Most of the ports are not functional and Khor Fakkan port does not have the capacity to handle that much cargo,” said Viren Marwaha, deputy director (sales and marketing) of DRRK Foods.
Freight charges, marine insurance premiums and port handling expenses have increased, affecting profitability.
