West Asia Tensions May Hit India’s Textile City Bhilwara As Shipments And Raw Material Costs Rise
With exports affected and raw material costs rising, Rajasthan’s textile industry fears prolonged war could disrupt shipments, cancel orders and threaten lakhs of jobs.
Published : March 13, 2026 at 3:00 PM IST
Bhilwara: Speculations are rife in Rajasthan’s textile hub Bhilwara that the ongoing conflict involving Israel, the United States and Iran could severely impact the district’s textile industry if the war continues for long.
Exports of textiles and denim produced in Bhilwara to Gulf countries such as Saudi Arabia, Kuwait, Qatar, the UAE, Oman and Bahrain have reportedly slowed down, with several consignments stuck at ports amid global uncertainty. Local shipments have also been affected as exporters are apprehensive to dispatch finished goods while international trade routes remain uncertain.
The rising cost of imported chemicals, dyes and packaging materials used in textile processing units has further added to the concerns of industry players.
RK Jain, Honorary General Secretary of the Mewar Chamber of Commerce, the leading industrial body in the Mewar region, said Bhilwara is globally known as the 'Textile City' as the district is home to more than 450 weaving units, 20 spinning mills, 21 processing units and five denim industries, providing direct and indirect employment to over 2.5 lakh people.
“These industries together produce about 100 million metres of fabric every month, of which about 10 percent is exported overseas. The ongoing war between Israel, the United States and Iran is already having global repercussions. If the conflict continues for long, its impact will be felt significantly in Bhilwara as well” Jain said.
According to industry estimates, yarn produced in Bhilwara is exported to Bangladesh and several European countries, while fabric and denim are shipped to Gulf nations including Kuwait, Saudi Arabia, the UAE, Oman, Qatar and Bahrain.
The total value of textile exports from Bhilwara is estimated at around Rs 8,500 crore annually. Of this, yarn exports account for nearly Rs 7,000 crore, denim exports for Rs 400-Rs 500 crore and other textile products for up to Rs 1,000 crore.
Industry representatives fear that if the war continues and global trade routes face disruption, export orders could be cancelled and shipments already on hold may not reach international markets, directly affecting the local textile sector.
Jain said the textile industry does not depend heavily on Gulf countries for imports, but processing units source chemicals, dyes and packaging raw materials from China and other countries. “The prices of some of these inputs have already started increasing, which could significantly affect processing and weaving units,” he added.
Textile industry representatives warned that if the conflict prolongs, its repercussions may extend beyond textiles and affect multiple sectors of the economy.
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