The Confederation of Indian Industry has submitted a 20-point policy agenda to the Indian government and the Reserve Bank of India, aimed at supporting businesses impacted by the ongoing Iran war and broader West Asia crisis.
The industry body noted that the conflict has evolved into a significant supply-side shock, with disruptions transmitted through rising energy costs, logistical bottlenecks and strained trade channels. It added that while initial policy responses by authorities had been swift and coordinated, pressures across supply chains and working capital cycles continue to persist beyond the initial phase.
CII stated that the situation requires sustained coordination between policymakers and industry to mitigate the economic fallout. The organisation’s Director General, Chandrajit Banerjee, observed that early measures by the government and the central bank had helped stabilise sentiment and demonstrated resilience in India’s policy framework in the face of external shocks.
The proposed 20-point agenda calls for a coordinated fiscal, financial and trade response, with a particular focus on supporting micro, small and medium enterprises (MSMEs) and export-oriented sectors. Key recommendations include expanding access to credit, introducing moratoriums and restructuring support, and reducing trade-related costs to ease pressure on businesses.
Among the measures suggested are the creation of a time-bound emergency credit guarantee scheme linked to the conflict, temporary relief on certain taxes to attract investment, and steps to ensure liquidity across the financial system. The proposals also emphasise the need to manage rising input costs, particularly in energy, and maintain the stability of supply chains and employment.
The recommendations come at a time when Indian industries, including textiles, are facing mounting challenges due to disruptions in global supply chains and rising input costs linked to the conflict. The crisis has affected trade flows and heightened concerns over inflation and economic growth, prompting calls for targeted policy support.
CII reiterated that continued collaboration between the government, financial institutions and industry stakeholders would be essential to safeguard economic stability and sustain growth amid ongoing global uncertainty.
