Amid the rising tensions in West Asia, senior transport leader Bal Malkit Singh has cautioned that the ongoing geopolitical developments could adversely impact India’s economy, particularly the road transport and Micro, Small and Medium Enterprises (MSME) sectors, and urged the Centre to take proactive measures.
Singh flagged the risk of a potential “energy war” that could disrupt supplies of crude oil, gas and related products, noting that early signs of strain are already visible across industries. He said rising input costs, reduced production and operational challenges are beginning to affect factories, small businesses and trading establishments.
The road transport sector, a key pillar of India’s supply chain, is already witnessing a slowdown in movement due to declining industrial output. In some segments, vehicle movement has reportedly dropped by up to 50 per cent, with concerns that it could fall further to 70–80 per cent if the situation persists.
He also pointed to increasing costs of tyres, fuel, lubricants and essential inputs, along with rising expenses at highway eateries, which are impacting the driver community. Reduced work opportunities could also trigger migration among drivers, he warned.
According to Singh, the cascading impact of these developments could raise production costs, put additional pressure on MSMEs and lead to an increase in the overall cost of living.
“The current geo-political developments are an early warning signal for our economy. The road transport sector, being the lifeline of trade and commerce, is already experiencing stress due to reduced movement and rising operational costs. If timely interventions are not considered, the situation could escalate significantly in the coming weeks,” he said.
West Asia conflict: `Govt must consider relief measures such as deferment of EMIs`
He urged the government to consider relief measures such as deferment of EMIs, soft loan schemes and tax relaxations to support transporters and MSMEs, ensuring business continuity and economic stability.
While expressing confidence in the leadership of Narendra Modi in handling emerging challenges, Singh emphasised the need for timely policy support to mitigate disruptions on the ground.
He added that the industry remains committed to supporting national interests and maintaining supply chain continuity, provided adequate policy backing is extended during the ongoing crisis.
