CHENNAI: Escalating tensions in Gulf countries have begun affecting exports from India. In Coimbatore, the textile, wet grinder, vegetable and motor pump industries are facing disruptions as the conflict escalates, according to Daily Thanthi.
Regarding textile exports, SAIMA Organising Secretary Selvaraj said, "Textile exports are being affected by the war situation. Textiles worth USD 37 billion are exported abroad annually. We were relieved when tariffs for the United States were reduced.
However, by then, the war in West Asia has begun affecting exports. If the price of crude oil increases, the price of polyester will also rise. This will further impact the textile industry. If shipping operations are disrupted, there will be a shortage of containers, which will also affect exports," he said.
Ponmani Wet Grinder owner P Kumaresan said, "Commercially manufactured wet grinders account for 20 per cent of exports to Gulf countries. The war has reduced crude oil production. The price of key raw materials used for plastic parts in tabletop grinders will increase by 30 to 50 per cent.
Copper prices have already increased by 30 per cent. In such a difficult situation, the Central and State governments can help overcome the crisis by reducing the GST on wet grinder production from 18 per cent to 5 per cent," he said.
On February 28, the US, along with Israel, attacked Iran, marking the start of the war. Iran subsequently launched attacks on US military bases in Gulf countries.
Due to rising tensions, air traffic has been suspended at several airports, with only a limited number of flights operating. In addition, shipping traffic at ports has also been disrupted.