"West Asia conflict has Karnataka’s garment, silk sectors rattled", 11 March 2025

The Middle East conflict has moved well beyond oil prices. It is now cutting deep into Karnataka's g arment factories and silk farms — threatening livelihoods across the state.

Major garment centres like Bellary and Bengaluru are bleeding. International buyers are cancelling contracts as shipments pile up at ports and airports, unable to move. Overall, new orders in March 2026 have fallen by an estimated 25–30 per cent...

Exports have already dropped 15–20 per cent over the past few months, and goods worth an estimated USD 2 billion are believed to be stranded on ships or at airports..."If the situation continues, the state's garment sector could lose more than Rs 1,000 crore per month," one industry insider told The Federal Karnataka...

The Gulf Cooperation Council countries...are the biggest buyers of Indian silk. With war looming, consumers are cutting luxury spending. The result: an 8 per cent drop in demand for Indian silk exports, and a flood of unsold inventory now flowing back into the domestic market.

Transportation costs have surged 30 per cent, pushing up the price of Indian silk in global markets at precisely the moment demand is softening. Payment delays of 45–60 days are squeezing cash flows further.

S. Gangadhar, chairman of the Karnataka Silk Marketing Board (KSMB)...[noted] no major damage yet, given the industry's reliance on domestic markets. But he warned that if fuel prices rise further, export costs will climb and the department will begin to feel real losses...

Karnataka's garment sector employs lakhs of women. As production scales back, shifts are being cut and monthly wages are shrinking. Meanwhile, banking disruptions in the Middle East are delaying export payments — pushing MSMEs closer to loan default.

The war's front lines may be far away. But for Karnataka's weavers, silk farmers, and garment workers the fallout is arriving right at their doorstep.