The ceramic industry in Gujarat’s Morbi district is facing a growing production crisis as the supply of essential natural gas has been blocked due to the escalating Iran war.
“Most of the gas and petroleum products come from GCC countries,” said Manoj Arwadiya, president of the Morbi Ceramic Manufacturers Association. “Currently, all ships passing through there are being stopped in the area controlled by Iran. There is a complete barricade there.”
Shipping through the Strait of Hormuz, which supplies about half of India’s crude oil and gas every day, has been halted as the Iran war escalated and spread across the wider Middle East. Tehran’s drone strikes in response to missile campaigns by Israel and the United States have forced Qatar to close the world’s largest LNG terminal at Ras Laffan.
Separately, Saudi Aramco has closed its Ras Tanura refinery, and Iraq has cut oil production because there is no way to evacuate output.
Impact of Iran war on India
For makers in Morbi – the world’s second-largest ceramics hub – the stakes are existential. Arwadiya said the industry is almost entirely dependent on gas-fired kilns. “If the gas supply is not sufficient, our estimate is that the entire Morbi ceramic industry will have to shut down,” he said, adding that if logistics are not improved it could lead to a complete shutdown due to gas shortage.
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Despite industry concerns, New Delhi says India’s energy security will remain intact. The country has eight weeks of inventories of crude oil and petroleum, including strategic reserves.
Officials further downplayed the impact of the Iranian blockade, claiming that only 40% of India’s crude imports go through the Strait of Hormuz.
While the government is closely monitoring the situation, they emphasize that diversified sourcing and existing reserves leave the country in a “comfortable position” to deal with potential supply side shocks.