textile industry

Will Russia-Ukraine Conflict Disrupt Indian Textile Business?

russia ukraine conflict and indian textile industry

Today morning, Russian President Vladimir Putin announced that a “full-scale invasion” has started in Ukraine by the Russian military.

The conflict started looming weeks before as tensions raised between Russia and its neighboring country.

Now that the NATO-allied countries have started to implement sanctions over Russia, it is believed to disrupt economies throughout the globe.

Let’s take a closer look at these scenarios.


Russia’s dominance over the world

vladimir putin

Russia is one of the largest crude oil producers in the world. They are a key supplier of energy globally.

Most of Europe relies on Russia for about a quarter of its oil supplies and a third of its gas.

Just as the invasion started, Brent oil prices have reached an all-time high surging above $100 per barrel.

It is expected to be in three digits for another 3-6 months.


Why does Ukraine matter?

World exports from ukraine

Ukraine is the second-largest country by area in Europe and has a population of over 40 million.

It also has rich natural resource reserves.

Let’s understand Ukraine’s global ranking in exports, natural reserves, and business.

Natural Resources & Industrial Dominance

Titanium Ores – No.1 in Europe

Coal reserves – No.7 Worldwide

Iron Ores – No.2 Worldwide

Shale Gas – No.3 in Europe

Mercury Ores – No.2 Worldwide

Total Natural reserves – No. 4 Worldwide

Steel Production – No. 10 Worldwide

Ammonia production – No.1 in Europe

Defense – No. 9 Worldwide

Arable land area – No. 1 Europe

Black soil – No.3 Worldwide

Barley Production – No. 2 Worldwide

Sunflower, Sunflower oil – No. 1 Worldwide

Rye, Honey – No. 5 Worldwide

And many more.


What effects will Ukraine Russia conflict have on Indian Business?

“Even today in the FSDC meeting when we were looking at the challenges posed for financial stability, crude was one of the things.

International worrisome situations, where we actually voiced that we want diplomatic solutions for the situation developing in Ukraine, all these are headwinds”, said finance minister Nirmala Sitharaman.

India accounts for less than a 1% share of Russia’s crude oil exports. So the Indian economies are hard to get hit on this front.

But it is expected that a 15% hike in Yarns in the coming weeks.

All apparels would see an average of 30% hike in the prices.

Since the demand for products is not decreasing, there can be substantial growth in the textile industry.


Opportunities for Indian Businesses amid Russia-Ukraine conflict

Modi meets russian president vladimir putin

The European Union is the largest importer of Indian goods.

Since the European supply chain will be disrupted, there will be a huge demand for Indian goods.

India has seen tremendous export growth in the last year and is expected to see further growth with this crisis.

More and more companies will be selecting India as their alternate supplier.

Textile Industry is also expected to benefit from this crisis as more and more countries will now be looking for India for uninterrupted materials.

Indian manufacturing won’t be affected in-depth as India is not reliant on Russian energy.



In every crisis, there will be an opportunity.

Just like the one we are presented with.

But war is not good for the common man.

We deeply condemn the violence and the killing of innocent people.

What are your thoughts on this scenario? How do you see the Indian textile getting affected? Comment below.

For woven fabric manufacturing, contact us.

Leave a Reply

Your email address will not be published. Required fields are marked *