From Small Shops To Big Factories: War's Toll On Indian Businesses

Within just 48 hours of the first military announcement, daily sales in key northern cities fell by over 40%, delivery timelines doubled, and consumer interest dropped sharply.

Suppose you own a Noida-based clothing brand that generally sells 2,500+ units weekly. But, due to the current situation, you managed only 900, as the sentiments of the consumers turned cautious.

When a war breaks out, it not only impacts our soldiers or borders, but it affects various aspects of our lives. 

Our everyday trade, local grocery shops, mid-sized manufacturers, and big industrial parks everything gets affected.

Whether it’s cancelled investments, cutback ad spends, or delayed deliveries, the impact is clearly visible across the economic chain.

Disrupted Supply Chains, Delayed Deliveries

You might have experienced that as soon as troops mobilise, trucks slow down. Goods stuck at checkpoints. 

Warehouses near the border area face a shortage of labourers. The impact is instant, mainly for commerce.

Let’s have a look at the expected delays in e-commerce in the week of conflict:

Rohan owns a gadget store based in Gurugram. His orders worth ₹15 lakh are stuck in transit due to sudden restrictions near Jammu.

MSMEs: Quickest To Bleed, Slowest To Recover

If you own a micro and small enterprise then you must know that a few bad weeks can destroy months of progress.

Let’s look at the example of revenue losses by MSMEs in affected zones:

Various MSMEs in Rajasthan and Punjab reported a drop in turnout of consumers by 35 to 50%. Most owners even closed their shops early due to safety concerns.

Consumer Sentiment Drops Across Markets

As the war situation rises, we as consumers delay non-essential purchases. Such decisions affect everything in the market, from real estate to smartphone bookings.

Let’s have a look at the change in the behaviour of consumers:

Recently, Radha decided to delay a regional launch of her home appliances brand by 3 weeks due to uncertainty in the market. 

Advertising And Branding: Budgets Drop

Various agencies of advertising have noted brands pausing campaigns focusing on lifestyle, wedding, and travel. 

Let’s look at the illustrative spending on weekly ads before and after the conflict:

Delivery, Housing, and Retail Projects Slowdowns

Many of the migrant workers are returning to their homes due to rising tension. Construction sites mostly depend on such migrant workers.

Let’s look at the disruption in the construction sector:

In various cities, there is a fall in housing demand. Commercial leasing also saw a dip, especially in NCR.

Equity Markets React Immediately

As soon as any tension or movement occurs, the market is the first one to react. With a fall in the confidence of the investors, the business plans of many businesses can get off track. 

Let’s look at what changed in the markets during the first week of conflict:

Various startups saw delays halfway through funding rounds. Puneet has a SaaS company in Pune. He had to push its Series A out by at least two months due to global investor caution.

Sector-Wise Impact Overview

Final Thoughts

Be it a small repair shop or a large office in a business park, we all can feel the pressure of conflict. Your shop will see fewer buyers. Your factory's operations will slow down. Companies take a break from marketing. Deliveries are stuck and facing delays.

Such uncertainty impacts both our earnings and emotions. Some businesses may quickly bounce back after the war. However, most businesses need time to recover.

It is advisable during such situations to stay flexible and manage costs wisely. We are here not just to survive shock but to stay ready for what is going to come next.

FAQs

1. Are cities away from borders also affected?

Yes, because of an overall drop in sentiment, funding, and consumption.

2. Do delivery timelines get affected during the war?

Yes, especially in near-border regions.

3. Which businesses gain during such periods?

Defence contractors and cybersecurity service providers may see demand.

4. Do foreign investors pull back during war?

Yes, usually resulting in market dips and delayed fund inflows.

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