The threat of a blockade at the Strait of Hormuz has sent shockwaves through the Indian manufacturing sector, leading to a sharp rise in the cost of essential industrial inputs. Engineering exporters are reporting a staggering 50% increase in the prices of oil derivatives, including furnace oil, cutting oils, and rust prevention oils, all of which are critical for the production process. Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC), has expressed deep concern that these rising costs are rapidly eroding the competitive edge of Indian goods in the global market. There is a growing fear that persistent energy shortages could lead to production halts, further driving up “cost-push” inflation across the domestic industrial landscape.