The ongoing conflict in West Asia has started shaking India’s business environment. From the big markets of the capital Delhi to the entire industrial area, concerns are deepening everywhere. If this situation continues for a long time, it can have a direct impact on businesses worth thousands of crores of rupees as well as the everyday lives of common people. The uneasiness is clearly visible in major commercial centers of Delhi—like Chandni Chowk, Khari Baoli, Bhagirath Place, Kashmere Gate and Sadar Bazaar. A large part of the trade in these markets depends on exports to West Asia and Europe, mainly via Dubai. The current geopolitical environment has increased supply chain uncertainty, leaving traders worried about their future.
₹5,000 crore business in danger of crisis
Chamber of Trade and Industry (CTI) Chairman Brijesh Goyal has warned that if the conflict drags on, Delhi’s trade and industrial sectors may suffer a loss of around ₹5,000 crore. According to the organization, the scope of this impact will not be limited to exports only, but it will also impact the local markets.
Signs of impact on demand for Indian clothes
According to CTI officials, Indian clothing—especially *sherwani*—is very popular in West Asian countries, including Iran. However, the current situation has slowed down the pace of this trade, due to which the clothing industry is on the verge of being badly affected.
Rise in prices of dry fruits
The prices of dry fruits imported from Iran—such as pistachios, prunes, raisins, figs, dates and *mamra* almonds—have seen a 30 to 40 percent increase. This has not only increased the operating costs of traders but also put a burden on the pockets of common consumers.
Pressure on pharmaceutical industry due to rising prices of raw materials.
The steep rise in prices of essential commodities like chemical components, plastics and aluminum has increased the cost of production for pharmaceutical companies. These ingredients are used extensively in making tablets and syrups as well as in packaging, making the entire production process even more expensive.
Huge increase in the prices of raw materials of essential medicines
In recent times, the price of paracetamol raw material has increased by about 47 percent. Additionally, an increase in prices of diclofenac (54 percent), diclofenac potassium (33 percent), amoxicillin trihydrate (45 percent), and ciprofloxacin (about 60 percent) has also been recorded. This situation is an indication that the prices of medicines may increase in the coming time.
Street food business stalled due to LPG crisis
The shortage of LPG cylinders has adversely affected Delhi’s hotels, restaurants, banquet halls, dhabas and street food vendors. Many small businessmen have either had to close their shops, or are able to open their shops only for a few hours.
40% of 50,000 vendors are on the verge of closing business.
According to CTI, there are around 50,000 street food vendors in Delhi. Of these, 30 to 40 percent people have reached such a point where they may have to close their business due to shortage of LPG. This is emerging as a serious crisis—not just for this business, but also for the livelihood of thousands of people.
