Amid escalating geopolitical tensions in West Asia, the Confederation of Indian Industry has proposed a comprehensive 20-point policy agenda to the Finance Ministry, seeking urgent relief measures for MSMEs, exporters, and energy-intensive industries impacted by the crisis.
Highlighting the need for swift intervention, CII emphasized a coordinated fiscal, financial, and trade response to address mounting challenges such as disrupted supply chains, rising input costs, and foreign exchange volatility. Drawing parallels with pandemic-era measures, the industry body has recommended a time-bound, conflict-linked emergency credit guarantee scheme to provide liquidity support, particularly to MSMEs and export-oriented sectors.
CII Director General Chandrajit Banerjee stressed that India’s past crisis management demonstrates the effectiveness of synchronized fiscal and monetary actions. He noted that the current phase demands targeted liquidity infusion, credit facilitation, and trade cost management to strengthen economic resilience.
Among key recommendations, CII has urged the Reserve Bank of India to introduce a temporary three-month moratorium and restructuring window for stressed businesses, alongside a special refinance facility for MSMEs. It also called for collateral-free working capital backed by government guarantees.
To ease operational burdens, the industry body proposed temporary relief in electricity tariffs and waivers on banking-related charges such as loan processing and forex handling fees. Additionally, it suggested rationalizing taxes and duties on energy inputs, including a temporary waiver of customs duty on liquefied natural gas imports.
CII further recommended the creation of a special forex swap window for oil and gas PSUs to stabilize dollar demand and reduce pressure on foreign exchange reserves. Over the medium term, it advocated establishing a conflict-linked export risk support mechanism within the Export Credit Guarantee Corporation of India.
To address liquidity constraints, CII also pushed for faster GST refunds, duty drawback clearances, and wider adoption of the Trade Receivables Discounting System (TReDS) across industrial clusters. These steps, it believes, will help businesses navigate disruptions and sustain growth amid ongoing uncertainty.
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