The Confederation of Indian Industry (CII) has outlined a comprehensive 20-point policy agenda, calling for coordinated fiscal, financial, and trade measures to address the economic impact of the ongoing West Asia crisis. 

The industry body also commended the government and the Reserve Bank of India (RBI) for a series of timely, well-calibrated steps taken to manage the evolving situation. According to CII, these measures reflect strong policy coordination across fiscal, administrative, and monetary domains, helping stabilise market sentiment amid global uncertainty. 

“The government and the RBI have responded with speed, clarity, and coordination. The early measures have helped stabilise sentiment and demonstrate that India’s policy framework is both responsive and resilient in the face of external shocks,” said Chandrajit Banerjee, Director General, CII. 

Supply-side pressures in energy, logistics continue to persist

However, CII noted that supply-side pressures in energy, logistics, and trade continue to persist beyond the initial phase of the crisis. While early interventions have mitigated immediate disruptions, several sectors—particularly MSMEs, exporters, and energy-intensive industries—remain under operational and financial stress. 

Banerjee said that lessons from past crises highlight the importance of coordinated fiscal and monetary action, adding that the next phase of policy response should focus on targeted liquidity support, credit facilitation, trade cost management and foreign exchange stability. 

Building on the existing policy framework, CII’s 20-point agenda spans immediate, short-term, and long-term measures. Key recommendations include the introduction of a Conflict-Linked Emergency Credit Line Guarantee Scheme to provide collateral-free working capital to affected sectors, a temporary moratorium, and restructuring window for MSMEs, and a special refinance window supported by targeted liquidity measures such as TLTRO. 

Operational relief measures, including extension of PSU contract timelines proposed

The industry body has also proposed operational relief measures, including extension of PSU contract timelines without penalties, reduction in performance guarantees, and temporary relief in electricity tariffs. It further suggested enhancing working capital limits for stressed but viable firms and easing administrative banking charges. 

CII also recommended expanding the Trade Receivables Discounting System, fast-tracking GST refunds and export-related dues, and rationalising taxes on energy inputs, including a temporary waiver of customs duty on LNG imports. 

To sustain investment momentum, the agenda proposes tax incentives for foreign investors, accelerated depreciation benefits, and faster GST refunds on capital goods to encourage private capital expenditure during the disruption period. 

The recommendations include measures to ensure financial stability, such as a special forex swap window for oil and gas PSUs and calibrated liquidity operations by the RBI to maintain orderly bond market conditions. 

Over the medium to long term, CII has called for institutionalising crisis-response frameworks, including a standing MSME Crisis Response mechanism and an Economic Shock Response Framework with predefined triggers. It has also emphasised the need to strengthen export credit and insurance systems, promote trade diversification, and establish a permanent export risk support facility. 

Additionally, the industry body has recommended revisiting priority sector lending norms, improving infrastructure financing mechanisms, and enhancing coordination among key institutions, including the Ministry of Finance, Ministry of Commerce, ECGC and EXIM Bank. 

CII also proposed setting up an institutionalised inter-ministerial coordination mechanism involving industry stakeholders to enable real-time monitoring of sectoral stress and ensure swift and effective policy implementation.