The West Asia crisis is exerting significant pressure on Gujarat's micro, small, and medium enterprises (MSMEs), particularly in industrial hubs like Morbi, Surat, Vadodara, and Ahmedabad. A report by Crisil Intelligence indicates that this conflict could reduce MSME revenue growth by nearly 100 basis points and compress operating margins by 50-100 basis points across various sectors. The export-oriented industries, such as textiles, gems and jewellery, ceramics, and chemicals, are particularly vulnerable due to rising energy costs and trade disruptions. For instance, gas prices in Morbi have nearly doubled, impacting the ceramic industry, which relies heavily on gas for production. Although some manufacturers have managed to pass on costs to consumers, concerns remain about future demand and labor shortages. Meanwhile, the textile sector in Surat faces a 30% increase in raw material costs, compounded by weak domestic demand and logistical challenges. The chemical sector in Vadodara is also struggling with rising input costs and decreased capacity utilization. To mitigate these challenges, the Union government has approved an expanded Emergency Credit Line Guarantee Scheme, although its effectiveness will depend on timely credit access for MSMEs already grappling with shrinking margins and uncertain demand.