Middle East Conflict Batters India's "Glass City," Threatening National Manufacturing Ambitions

A gas shortage and shipping spike caused by the Middle East conflict have shuttered furnaces in Firozabad, India, threatening thousands of jobs and national GDP goals.

By: AXL Media

Published: Apr 2, 2026, 4:26 AM EDT

Source: Reuters

Energy Shock in the "Glass City"

Firozabad, known as India's "Glass City," relies on gas-fired furnaces that must remain above 1,000°C to keep glass molten. Because India does not stockpile natural gas—prioritizing oil instead—the government has slashed industrial supply to protect household and agricultural needs.

Production Drop: Since early March 2026, a 20% cut in gas supply has resulted in a 40% plunge in output.

Labor Crisis: Industry groups estimate that up to 500,000 people depend on this sector. In some units, the workforce has been slashed from 500 to fewer than 200 in a single month.

Shipping Blockades and Stranded Freight

The crisis extends beyond production to logistics. India’s heavy reliance on Gulf shipping routes and the Strait of Hormuz has left it uniquely vulnerable to the current conflict.