
The ongoing Iran war has increased raw material and packaging costs for India's textile sector, the country's second-largest employer supporting over 45 million jobs. Disruptions in the Strait of Hormuz have driven up energy and freight costs, while some workers face fuel shortages, causing labor shortages. Despite hopes for recovery after U.S. tariff relief, rising polyester prices and cautious demand have led to production cuts and slower export growth. A fragile ceasefire offers temporary relief, but sustained peace is needed for the industry to grow rather than just survive.