“Indian companies are facing downstream impacts, ranging from shipment delays to disruptions in key energy inputs, as well as emerging shortages of essential raw materials and intermediates in many sectors that are heavily dependent on timely cross-border flows,” Banerjee said.The industry body said the disruptions have also put pressure on energy markets and trade, affecting both imports and exports and impacting manufacturing and allied industries.“The conflict in the Middle East has disrupted vital sea routes and put pressure on global supply chains, energy markets, and both imports and exports,” Banerjee said.Despite emerging challenges, CII said India is better placed than before to absorb external shocks. Banerjee said the country has entered this phase “from a position of strength”, supported by structural reforms and the government’s Atmanirbhar Bharat effort, which has strengthened domestic resilience.The industry lobby described the government’s response as “prompt, calibrated and sustained”, citing measures such as diversification of crude oil sourcing, maximizing LPG production, export facilitation and currency stabilization.According to CII, Indian industry is adapting to the shocks by accelerating energy diversification, optimizing supply chains and protecting jobs.It also highlighted the importance of continued investments in renewable energy, green hydrogen, biofuels and energy efficiency, calling them strategic imperatives to reduce vulnerability to geopolitical energy shocks.“While the situation remains challenging, we are confident that the government’s approach, coupled with partnership-driven engagement with all stakeholders, will help India weather this shock and maintain its forward economic momentum,” Banerjee said.CII said the challenge is important, but so is India’s ability to respond proactively and secure its economic interests.