India’s Small Firms Face $1.3 Billion Risk as Iran War Disrupts Investments

The ongoing US-Iran conflict has put nearly $1.3 billion worth of investments by around 800 Indian small companies at risk, as tensions disrupt key trade routes and business operations across West Asia. Sectors like shipping, chemicals, fertilisers and engineering goods are among the most exposed. Payment delays, rising freight costs and supply chain uncertainties are adding to the pressure. Many firms are now adopting a cautious wait-and-watch approach, reassessing expansion plans and exposure to the region. Prolonged instability could further impact exports, profitability and cash flows, while also forcing companies to explore alternative markets and diversify risk.

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