CII’s 20-Point Agenda: How India Plans to Handle the West Asia Crisis

India’s leading industry body, the Confederation of Indian Industry (CII), has proposed a 20-point policy agenda to protect businesses from the growing economic impact of the West Asia crisis.

The plan focuses on three urgent areas: fiscal support, financial stability, and trade continuity. The goal is clear, help MSMEs, exporters, and energy-dependent industries stay resilient as global uncertainty rises.

This is not just a policy discussion. It directly affects costs, jobs, exports, and business survival across India.

Why the West Asia Crisis Matters for India

The West Asia crisis is already disrupting key parts of the global supply chain. For India, the biggest risks include:

• Rising crude oil and gas prices
• Higher shipping and freight costs
• Increased insurance premiums for trade routes
• Delays in exports and imports
• Pressure on working capital for businesses

These issues hit smaller businesses the hardest. MSMEs and exporters often operate with tight margins and limited cash flow.

What Is CII’s 20-Point Policy Agenda?

CII’s recommendations are designed to reduce immediate stress on businesses while maintaining long-term economic stability.

The agenda focuses on three key pillars:

1. Credit and Liquidity Support for Businesses

Access to cash is the biggest concern during any crisis. CII recommends:

• A government-backed emergency credit guarantee scheme
• A temporary moratorium on MSME loans
• Loan restructuring options for affected sectors
• Faster GST refunds to improve cash flow
• Expanded use of TReDS for invoice financing

These steps aim to ensure businesses can continue operations without shutting down due to short-term liquidity issues.

2. Relief from Rising Energy and Input Costs

Energy costs are a major concern, especially for manufacturing and transport sectors.

CII suggests:

• Temporary reduction or waiver of duties on LNG imports
• Lower electricity tariffs for affected industries
• Rationalisation of taxes on fuel and energy inputs

These measures can help control production costs and prevent price increases from spreading across the economy.

3. Trade and Export Support Measures

Exporters are facing delays, higher costs, and contract risks. To address this, CII proposes:

• Extension of contract deadlines without penalties
• Reduced performance bank guarantees
• Lower security deposits for government contracts
• A stronger export risk insurance framework via ECGC

This ensures Indian exporters remain competitive even during global disruptions.

Why MSMEs Are the Focus

MSMEs are at the center of CII’s recommendations for a reason.

They contribute:

• Around 36% of India’s manufacturing output
• Nearly 45% of total exports
• Millions of jobs across sectors

But they also have:

• Limited access to low-cost credit
• Lower financial buffers
• Higher vulnerability to supply shocks

If MSMEs struggle, the impact spreads quickly across supply chains, affecting large industries and exports.

What This Means for India’s Economy

CII’s agenda is not about large-scale stimulus. It is about targeted support where it is needed most.

The strategy focuses on:

Preventing Business Disruptions

Helping viable businesses survive short-term shocks without closures or layoffs.

Maintaining Export Competitiveness

Ensuring Indian exporters can continue fulfilling global demand despite rising costs.

Controlling Inflation Spillover

Reducing input cost pressures so they do not lead to widespread price increases.

Key Takeaways

• CII has proposed a 20-point plan to manage the economic impact of the West Asia crisis
• The focus is on liquidity, cost relief, and trade support
• MSMEs and exporters are the most vulnerable and need targeted help
• The goal is to prevent short-term disruptions from becoming long-term damage

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