THE WHAT? India’s glass manufacturing sector is facing significant disruption as energy shortages force factories to cut production.
THE DETAILS Gas supply constraints, linked to Middle East geopolitical tensions, have led the Indian government to divert LNG and LPG supplies from industry to households, severely impacting glassmakers reliant on gas-fired furnaces. Production in key hubs such as Firozabad has been reduced by up to 50%, driving price increases of 20–40% for glass products. The shortage is affecting multiple sectors, including beverages, pharmaceuticals, cosmetics and food, with companies reporting rising packaging costs and supply delays. Manufacturers are also scaling back expansion plans and preparing for prolonged disruption amid uncertainty around global energy supply.
THE WHY? The crisis highlights India’s reliance on imported energy and the vulnerability of energy-intensive industries to geopolitical shocks, with ripple effects across consumer goods supply chains.
Source: Bloomberg