According to foreign news on January 29, Indian rating agency CRISIL Ratings stated that despite the ongoing crisis in the Red Sea, companies in the Indian textile and chemical industry may not be immediately affected because they Better ability to pass on higher costs and weaker trade cycles.
As for home textiles (3/4 of India’s products are exported), their profit margins can withstand higher freight costs over a period of time.
While the direct impact of the crisis on most Indian companies will be modest, a protracted conflict could impact profitability and working capital cycles in export-oriented industries. Supply chain problems could also intensify, dampening trade volumes and reigniting inflationary pressures, the report added. </p
