India’s Ceramic Hub Shuts Down as Iran War Disrupts Gas Supply

India’s largest ceramic manufacturing hub in Morbi, Gujarat, has been brought to a near standstill as gas shortages triggered by the ongoing Iran war choke industrial fuel supplies.

The crisis, linked to escalating tensions in the Middle East, has severely disrupted the flow of liquefied natural gas (LNG) and propane critical fuels used in ceramic production. The disruption is largely tied to instability in the Strait of Hormuz, a key global energy shipping route now affected by the conflict.

Industry officials say over 400 ceramic units in Morbi, widely regarded as the world’s second-largest ceramic tile manufacturing hub, have shut down operations due to the shortage. Many of these factories are expected to remain closed for up to three weeks, with production only resuming once gas supply stabilises.

The ceramic industry in Morbi depends heavily on continuous gas supply for firing kilns and drying tiles. With supplies cut, both propane, and natural gas-powered units have been forced to halt production, bringing economic activity in the region to a sharp slowdown.

The shutdown threatens the livelihoods of an estimated 400,000 workers directly and indirectly employed in the sector, raising concerns about job losses and economic ripple effects across Gujarat’s industrial economy.

The situation has been worsened by government measures prioritising household cooking gas over industrial use, leaving factories struggling to secure fuel. Analysts warn that prolonged disruption could lead to higher tile prices globally and strain construction supply chains.

This development highlights the far-reaching economic impact of the Iran conflict, with industries far beyond the Middle East now feeling the pressure of disrupted energy supply chains.