Recent geopolitical tensions at the international level have caused significant disruptions in global supply chains, directly affecting key industrial sectors in the Indian state of Rajasthan. Delays in maritime transport and rising shipping costs have particularly impacted the marble, granite, and textile industries, with serious consequences for approximately 200,000 workers.
Reduced Production in Chittorgarh
In the Chittorgarh region, a major marble production hub, output has declined by 50%. Units that once operated around the clock have now reduced operations to just 12 hours per day.
Rising crude oil prices have driven up the cost of chemicals used in marble processing by as much as 50%. Of the 300 units in the area, those dependent on imports and exports are now close to shutting down, while their revenues have nearly halved.
According to industry representatives, around 35 units rely on imports and 5 to 7 on exports, all of which have been severely affected. Before the crisis, import units processed approximately 7,000 tonnes of marble and 500 tonnes of granite monthly, producing about 3,900 square meters daily. Today, this output has been reduced by half.
The remaining 265 units processed about 135,000 tonnes of raw materials monthly, with daily production reaching 55,700 square meters. However, increased transport costs and reduced demand have significantly impacted their performance.
Rising Costs and Export Losses
Exports have suffered losses of 15% to 20%, mainly due to higher freight rates and delays at ports, where containers remain stranded.
At the same time, serious disruptions have been recorded in the supply of raw materials from countries such as Iran, Iraq, China, and Italy, while the cost of chemicals has increased by 30% to 50%, further straining business viability.
Collapse of the Granite Industry in Jalore
The situation is even more critical in the Jalore region, another major granite production hub. Over the past 40 days, approximately 50% of factories have suspended operations. Out of 1,032 units, only 600 are currently operational.
Daily production has dropped sharply, from around 120,800 square meters to just 42,300 square meters. The lack of work is leading to daily migration of about 10% of the workforce.
Complete Halt of Exports
Exports, which accounted for about 22% of the sector’s activity, have now come to a complete halt. Before the crisis, 20 to 22 containers carrying approximately 12,700 square meters of material were exported daily, 80% of which was destined for the United Arab Emirates.
Ongoing instability in international transport and rising operational costs are creating a highly uncertain environment for the future of the industry in the region, with businesses and workers facing unprecedented challenges.
