Encountering a ripple effect from declining automobile sales, the forging industry in the country is facing a sharp decline in demand, resulting in substantial production cuts. The automotive industry accounts for 60-70% of forging production, and with the auto sector witnessing a slowdown, the forging industry has seen an average decrease of 50% of the total capacity. Vikas Bajaj, president, Association of Indian Forging Industry (AIFI), said, "The industry is currently concerned about the lack of semi-conductor chips. It has an indirect impact on India's forging sector. Furthermore, the rise in steel prices has harmed the forging industry. The basic requirement in the forging industry is steel, and the current price hike has disturbed the supply chain." The forging industry in India comprises 85% of the MSME sector, According to AIFI. The Indian forging industry is the second largest in the world, next only to China. It has been identified by the EEPC as a key sector for export growth.