New Delhi: India’s manufacturing sector is reeling under pressure from labour shortages and rising input costs arising from global supply chain disruptions caused by the West Asia conflict, industry representatives told the Deccan Herald.Gaurav Munjal, Managing Director of Hero Ecotech Ltd, told the paper that input costs in March increased by 10-15% compared to the previous month. Hero Ecotech Ltd is among India’s leading manufacturers and exporter of bicycles to the US and Europe. Munjal added that high US tariffs have also affected trade.The Federation of Indian Export Organisations (FIEO) stated that merchandise exports are estimated to have declined by 7-10% in March due to supply chain issues. FIEO President S.C. Ralhan said goods exports could see a 2-3% drop in the full financial year 2025-26. However, he indicated that combined exports of goods and services may grow by 5-6%, supported by services exports, the Deccan Herald report said.Official data cited by the paper showed that during the first 11 months of 2025-26, merchandise exports stood at $402.93 billion, while total exports reached $790.86 billion. In 2024–25, overall exports were recorded at $825.3 billion, of which $437.7 billion came from merchandise exports.The Union commerce ministry is scheduled to release the March and full FY26 trade data later this week, the report said.Manufacturers are also reporting workforce shortages. Sanjoo Tandon, vice president at Eastman, told the paper that many workers who went on leave for Holi in late February and early March have not returned. Other industry leaders reported that labourers are feeling discouraged and going back to their villages.Also read: Six Ways the West Asia Conflict Is Showing in India’s EconomyThe Wire has previously reported how exporters and factory owners in Uttar Pradesh are facing a shortage of industrial LPG despite government claims of stable supply, affecting production and increasing costs. Reports have also emerged from Gujarat’s Morbi, where Gujarat factory owners have asked migrant workers to pack up and leave for their hometowns.Exporters also highlighted logistics challenges, including higher freight costs and limited availability of shipping containers. Amit Marwaha of DRRK Foods told the paper that rice exports have been affected by logistics and payment settlement issues.Shipments of basmati rice to West Asian markets such as Iran, Iraq and GCC countries have been disrupted since early March due to the US-Israel-Iran conflict. While recent ceasefire developments and diplomatic engagement between the US and Iran have signalled some relief, exporters remain cautious as conditions in the region continue to be uncertain, the report said.According to the report, industry representatives believe that it may take several months for the situation to stabilise.