CII commends govt response to West Asia crisis, outlines 12-point agenda for industry resilience

New Delhi [India], March 29 (ANI): Confederation of Indian Industry (CII) on Sunday commended the Government of India for its swift, coordinated and well-calibrated response to the disruptions arising from the West Asia crisis, and called on industry to complement these efforts through responsible and constructive action.
While the policy response has mitigated immediate risks, the evolving situation requires continued coordination between the government and the industry.
CII has therefore outlined a set of actions that the industry may consider in the current context.
First, industry may work with the government in building strategic reserves and buffer mechanisms for critical raw materials, fuels and intermediate goods. Collaborative approaches to stockholding, shared infrastructure and improved data visibility can significantly strengthen national preparedness against future disruptions.
Second, companies may endeavour to maintain price stability by ensuring that the benefits of stable fuel prices and moderated logistics costs are transmitted to end consumers and downstream partners. This will support inflation management and reinforce industry credibility.
Third, companies may strengthen supply chain resilience by identifying alternative sourcing corridors, diversifying vendor bases and building calibrated inventory buffers for critical inputs. This will reduce exposure to disruptions arising from concentrated maritime routes.
Fourth, firms may accelerate investments in energy transition, including renewables, green hydrogen and industrial energy efficiency. The current situation reinforces the need to reduce dependence on conventional fuels and build long-term energy resilience.
Fifth, wherever technically and commercially feasible, companies may explore switching from LPG to natural gas and other efficient energy options. This will support cost optimisation while contributing to a cleaner energy mix.
Sixth, businesses operating institutional kitchens and large food services may adopt innovative approaches to reduce fuel intensity, including the use of electric or bio-based cooking solutions and optimised consumption practices.
Seventh, companies may prioritise the protection of employment and livelihoods by using internal efficiencies and cost management to absorb temporary shocks, thereby supporting workforce stability.
Eighth, larger firms may support MSME partners through faster payments, better credit terms and improved order visibility. This will ease liquidity pressures across supply chains.
Nineth, companies may enhance energy efficiency and operational optimisation across processes to reduce exposure to fuel cost volatility.
Tenth, exporters and manufacturers may strengthen risk management practices, including logistics planning, insurance coverage and receivables management, to improve resilience in uncertain conditions.
Eleventh, firms may invest in technology and data systems that improve supply chain visibility and operational flexibility, enabling quicker response to disruptions.
Twelfth, companies may review procurement and contracting practices to build greater flexibility in sourcing, pricing and delivery timelines, thereby reducing vulnerability to sudden external shocks.
Chandrajit Banerjee, Director General, CII, said that "this is a moment for partnership. The Government has created a strong enabling framework. Industry can complement this by ensuring continuity, supporting smaller enterprises and maintaining confidence across the economy. Such a coordinated approach will help India navigate the present situation while strengthening long-term resilience."
He further noted that "the current developments underline the importance of economic security as a central pillar of India's growth strategy. This spans energy resilience, supply chain diversification, technology capability, and financial stability, among other such critical areas."
"CII will be taking forward a strong advocacy and work programme on economic security, working closely with Government and industry stakeholders to develop actionable solutions," he added.
CII further noted that since the onset of the crisis on February 28 2026, the Government has acted decisively across multiple fronts.
CII highlighted that the Government moved early to reassure the country on fuel availability and supply chain continuity, supported by close monitoring through an interministerial mechanism. It has taken steps to expand LPG production and availability, ensure priority allocation of gas to essential segments, and increase the supply of feedstock to critical industries.
The calibrated increase in domestic gas allocation for industry, alongside continued prioritisation of PNG and CNG, has been significant in maintaining production continuity. Measures to curb hoarding and ensure smooth distribution have further strengthened supply-side management.
On the trade front, the Government has supported exporters through the restoration of RoDTEP rates and value caps, along with targeted measures to address freight and insurance disruptions, including the RELIEF mechanism. Enhanced export credit support and expanded ECGC coverage have helped sustain exporter confidence, particularly among MSMEs.
The decision to reduce excise duty on petrol and diesel on March 27 2026, has provided timely relief from rising fuel costs and moderated logistics expenses across sectors.
The continued emphasis on social protection through the PM Garib Kalyan Anna Yojana has ensured that vulnerable households remain insulated from price pressures and consumption demand is sustained.
CII reiterated that Indian industry remains committed to working with the Government in the national interest and expressed confidence that through coordinated policy support and responsible industry action, India will not only manage the current disruption effectively but also emerge stronger and more resilient. (ANI)