The war in Iran has led to higher shoe production costs in India.

According to the Indian Express, shoe manufacturers across India, the world's second-largest footwear producer after China, have begun raising prices for their products and services due to rising raw material costs. The footwear industry is struggling due to a shortage of petrochemicals.

Approximately 32 components are used in shoe manufacturing, including soles, laces, heels, polyurethane linings, packaging materials, adhesives, and fabrics. Prices for some key petrochemicals, such as synthetic rubber, polyurethane, and EVA, which are essential for sole and fabric production, have nearly doubled. Major manufacturers are cutting production and raising prices.

"For us, the cost of producing soles has increased by 15% since the start of the war, primarily due to rising raw material costs. For example, the cost of polyurethane (PU) rubber used in soles has increased by 50%, and the availability of monoethylene glycol (MEG), used to increase sole hardness, has been disrupted because it is imported from Kuwait. In the last 30 days since the start of the war, the company's turnover has fallen by 25%," says Sudhir Rustagi, founding director of Ess Aar Universal (P) Ltd, a footwear manufacturer that supplies the Indian Navy and companies such as Zara, Bata, and Fizzy Goblet.

Mecca Rafique Ahmed, chairman of Chennai-based Farida Group, also notes that the shortage of petrochemicals has increased the cost of shoe production at his company by at least 10%.

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Ajay Gaur, deputy director of the Indian Footwear Component Manufacturers Association (IFCOMA), which represents about 500 manufacturers, noted that prices for key raw materials have already increased by 20-80%, and rubber prices, according to his forecast, will increase by another 50-60%.

Gopal Gupta, President of the Agra Footwear Manufacturers and Exporters Chamber of Commerce (AFMEC), also notes that due to rising raw material costs, the cost of key components for footwear production has increased overall costs for manufacturers by approximately 10%. Furthermore, he estimates that logistics costs for exporters have increased by 4-5%.

Transit times for Indian exports to key markets such as Europe and the US have increased from approximately 23 days to nearly 35-40 days. Because ships avoid the Suez Canal and bypass it via the Cape of Good Hope, industry estimates suggest transit delays can reach 14 days, with fuel costs increasing by 20%. Similarly, freight costs have also increased by 750-900% on some routes between India and West Asia. Export orders in India have already fallen by approximately 60%.