Tata Sons Chairman N Chandrasekaran has reportedly asked top executives across group companies to prepare for a tougher business environment as the conflict in West Asia has threatened to disrupt supplies, raise costs, and delay projects, news agency PTI said on Thursday, citing sources.
At a review meeting on Thursday, Chandrasekaran told more than 30 chief executives and managing directors that the group needed to brace for demand pressures, higher logistics and commodity costs, and possible setbacks in execution timelines, a person with direct knowledge of the discussions told PTI.
“The chairman advised companies to be prepared for a tougher business environment marked by demand slowdown, project delays driven by supply chain disruptions, and cost increases due to oil prices, shortages, currency movements and logistics costs, among others,” the person familiar with the matter was quoted as saying by PTI.
Chandrasekaran also urged companies to conserve cash, manage spending carefully, and review project start dates where necessary.
He advised executives to strengthen cybersecurity preparedness, improve network resilience, and run cost-improvement programmes with clear targets.
“You must be in a state of readiness, be agile; do not lose momentum,” Chandrasekaran told the executives, as per PTI.
The West Asia crisis has triggered a major economic stress test for India, primarily through surging energy prices, supply chain bottlenecks and currency depreciation.
The closure of the Strait of Hormuz, a key transit route for roughly a fifth of global oil shipments, has pushed up energy and freight costs, tightening supply chains across regions.
For India, which relies heavily on imported crude, this has translated into pressure on inflation and the currency, while widening external imbalances. Higher input costs and logistical challenges are expected to weigh on industrial activity and export momentum in the near term.
Earlier in the day, the central government announced it was exempting customs duty on a range of critical petrochemical products till June 30, 2026, as a temporary measure to support domestic industry amid supply disruptions linked to the West Asia conflict. It has also said it may step in to manage domestic supply risks. Measures such as cutting import duties or regulating exports could be considered if the availability of essential goods is affected by the conflict, Director General of Foreign Trade Lav Agarwal has said.
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