Reliance Industries has expressed concerns over increasing geopolitical instability and recently imposed US tariffs, warning that these developments pose serious risks to global trade and supply dynamics affecting its oil-to-chemicals operations.
Reliance Industries, in its latest annual report released on August 7, 2025, highlighted mounting concerns over the impact of global trade wars and policy distortions on its oil-to-chemicals (O2C) vertical.
In its most recent annual report, the company highlighted that, although global oil demand is anticipated to stay robust despite the growing adoption of electric vehicles, supply chain disruptions caused by tariffs and conflicts could lead to volatility. Reliance stated, “Ongoing geopolitical tensions and tariff-related uncertainties may influence trade flows and the balance between demand and supply.”
US President Donald Trump recently signed an executive order increasing tariffs on a broad range of Indian goods. These new duties impact essential export sectors including textiles, leather, chemicals, seafood and machinery. India exported goods worth over $86 billion to the US in FY25. Nearly 66% of this may now fall under higher tariff categories, posing a direct threat to foreign exchange inflows and sector competitiveness.
Reliance’s O2C segment relies heavily on the global movement of refined products and base chemicals. With trade routes facing uncertainty and demand stagnating in markets like China, the company foresees unstable operating conditions in the near term. Aviation growth in Asia and evolving economic sanctions are additional factors that could sway demand forecasts.
"Key factors to watch in 2025 would be stagnating demand in China (EV penetration), aviation growth in Asia, geopolitical uncertainties and new economic policies (tariffs & sanctions)," the company stated in its annual report.
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On August 7, 2025, Reliance Industries share price opened at ₹1,387.70 on NSE, below the previous close of ₹1,392.80. During the day, it surged to ₹1,390.70 and dipped to ₹1,375.20. The stock is trading at ₹1,377.70 as of 12:59 PM. The stock registered a moderate decline of 1.08%.
Over the past week, it has declined by 1.15%, over the past month, it has declined by 9.19%, and over the past 3 months, it has declined by 2.01%.
Reliance’s cautionary note underscores how global policy shifts and geopolitical unrest continue to influence corporate strategies. For India Inc., structural challenges driven by tariff escalations and weakening global demand, particularly from China, may require extensive recalibration going forward.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Aug 7, 2025, 2:00 PM IST
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