Indian Glassmakers Cut Output 30% as Gulf Gas Crisis Drives Up Energy Costs
Updated
Updated · Financial Times · May 31
Indian Glassmakers Cut Output 30% as Gulf Gas Crisis Drives Up Energy Costs
2 articles · Updated · Financial Times · May 31
Gas supply cuts of more than 20% since early March have forced Firozabad’s glassmakers to reduce output by an average 30%, hitting India’s main glassmaking hub.
Two-thirds of India’s gas imports come from the Middle East, and disruption linked to the Strait of Hormuz closure has lifted fuel prices that make up as much as 35% of glassmaking costs.
Exports have also weakened as shipping costs jumped and Gulf-bound shipments stalled, while soda ash supplies from Iran were nearly halted, squeezing factories already operating on thin margins.
Up to 1 million jobs are tied directly or indirectly to Firozabad’s roughly 200 glass companies, which generate more than $1 billion in annual revenue and $200 million in exports.
The shock is adding to pressure on Modi’s manufacturing push and India’s small-factory sector, with one industry group saying 26% of the country’s 30 million-plus small manufacturers are now 'on life support.'
Could this devastating supply shock be the unlikely catalyst for the innovation Firozabad needs to survive long-term?
As global conflicts dictate local economies, are renewable energy sources the only real path to industrial security?
Crisis in Firozabad: $1 Billion Glass Industry Faces Export Collapse Amid 2026 Energy Turmoil
Overview
Firozabad, India's historic glassmaking hub, is facing immediate and severe disruptions as of June 2026. The highly energy-intensive glass industry, which supports hundreds of thousands of jobs and over 50,000 families, is under strain due to its reliance on continuous furnace operations at extremely high temperatures. Any interruption in fuel supply can quickly halt production, and restarting cooled factories would cost billions and take weeks. These challenges are not only threatening local livelihoods but are also sending shockwaves through national and international economies, highlighting the industry's vulnerability to energy supply disruptions.