Ludhiana: Escalating geopolitical conflict in the Middle East is threatening to destabilise this industrial heartland of the country in Punjab, prompting urgent calls for govt intervention to shield manufacturers from surging energy costs.The Federation of Industrial and Commercial Organizations (Fico) said on Friday that the confrontation involving Iran, Israel, and the United States had sent international crude oil prices climbing, directly inflating the cost of petrochemical-based raw materials. The spike is hit hardest in sectors reliant on plastics and polyester yarn, where production costs are becoming increasingly unsustainable.“The rising costs are forcing manufacturers to increase the prices of finished goods, which ultimately weakens market demand,” said FICO president, Gurmeet Singh Kular. He noted that the prevailing global uncertainty has made effective business planning nearly impossible for local firms.The crisis is particularly acute for micro, small, and medium enterprises (MSMEs), which anchor the regional economy. General Secretary Manjinder Singh Sachdeva said many units are struggling to maintain production levels under tightening margins, posing a significant threat to supply chains and employment.Fico has formally urged the central govt to rationalise taxes on petroleum products and implement relief measures for MSMEs. The group maintains that timely fiscal intervention is essential to ensure Indian industry remains competitive as global market volatility persists.
