Ghaziabad's construction industry takes a beating due to Russia-Ukraine war

Due to the war between Russia and Ukraine, industries related to construction goods are being affected. After the worsening of the situation in Russia-Ukraine, there has been a jump in the prices of raw materials, which is directly affecting the cost of production.

New Delhi/Ghaziabad: Amid the ongoing war between Russia and Ukraine conflict, products related to construction industries are bearing the brunt of war in Ghaziabad. After the worsening situation in Russia-Ukraine, there has been a hike in the prices of raw materials, which is directly affecting production as Ukraine is the seventh-largest producer of iron ore in the world.

Arun Sharma, president of Ghaziabad Industries Federation, said, "Under 'One District One Product,' scheme, products related to fabrication and engineering goods are manufactured in Ghaziabad. About 15,000 industrial units produce products related to fabrication and engineering goods. Due to the ongoing war between Russia and Ukraine, the prices of raw materials have increased by about 15 to 20 percent. The government tenders (highway, metro, etc.) which were taken by industrial units are now costing more to complete. The burden of which is falling on the industrial units."

Concurring the same, Nandlal Sharma, vice president of Kavinagar Industrial Area and owner of automobile Industry, said that "Due to war like situation, the tenders and orders which were taken at the old rate are now facing difficulty in fulfilling them. Due to the rise in the price of raw materials, new orders and tenders are not being taken. Due to which production has to be reduced."

According to Kailash Arora, senior vice President of Kavi Nagar Industrial Area, due to the war between Russia and Ukraine, not only industrial units but also small vendors and suppliers are being affected. "If production is affected in the coming days, then it can also have a direct impact on employment because a large number of people work on contract in these units."

Similarly, Udyog Kunj Industrial Area General Secretary Jitendra Tyagi who owns a wire factory industry, said "The prices of raw materials used in the wire industry have increased by Rs 5,000 per tonne. The raw material which was priced at Rs 55,000 a tonne before the war, has now crossed Rs 60,000 a tonne. The increase in the cost of the product affects the demand in the market, which directly affects production. Due to the current situation, about 25 to 30 percent of production has decreased in the factory."