India, June 30 -- Across India's industrial clusters, stress is becoming increasingly visible because of the ongoing geopolitical tensions in West Asia that have contributed to heightened volatility in energy and logistics markets. For India, which imports over 85% of its crude oil, this is a direct operating shock. The impact is most visible in the MSME sector, which contributes around 30% of GDP and employs over 110 million people, making it the backbone of the economy.

In textile hubs, exporters are renegotiating contracts as freight costs rise and delivery timelines stretch. Engineering clusters are navigating input shortages. Elsewhere, small manufacturers are scaling back amid rising raw material prices.

These are connected signal...