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CAIT Urges Credit Relief, Price Controls as Iran War Threatens India Trade

The Confederation of All India Traders has urged the government to implement emergency credit relief and liquidity measures for MSMEs and small traders, fearing severe impact from the West Asia crisis. It recommends forming a special task force to assess the situation and calls for interest subvention, price stabilisation for fuel and raw materials, and faster export refunds. The industry body warns of rising input costs, supply chain disruptions, and increased freight costs harming competitiveness. CAIT praised the government's existing strategic steps but stressed the need for timely intervention to protect vulnerable sectors.

Key Points: CAIT Seeks Govt Relief for MSMEs Amid West Asia Crisis Impact

  • Credit relief for MSMEs
  • Input cost stabilisation
  • Export support measures
  • West Asia Impact Task Force
  • Fuel price monitoring
2 min read

CAIT urges govt to implement credit relief, input cost stabilisation measures amid Iran war

CAIT urges credit support, input cost stabilisation for MSMEs as Iran-Israel conflict threatens supply chains, exports, and raw material prices.

"The conflict could particularly impact small businesses and MSMEs and the government should take timely precautionary and relief measures. - Praveen Khandelwal"

New Delhi, April 6

The Confederation of All India Traders on Monday urged the government to implement credit and liquidity-supportive measures, especially for MSMEs over concerns of the ongoing West Asia crisis impacting India's trade and industry.

The association called for extension and relaxation of loan repayments for MSMEs and small traders and launch of a special Credit Guarantee Line Scheme to support liquidity.

Further, it requested interest subvention for severely impacted sectors, close monitoring and stabilisation of fuel and raw material prices and freight, insurance support, and faster refunds for exporters, according to an official statement.

The conflict could particularly impact small businesses and MSMEs and the government should take timely precautionary and relief measures, Member of Parliament and Secretary General Praveen Khandelwal said in a letter to Finance Minister Nirmala Sitharaman.

Khandelwal also strongly recommended the constitution of a 'West Asia Impact Assessment & Response Task Force', comprising representatives from key ministries, RBI, trade bodies, and sectoral experts, to continuously assess the evolving situation and recommend timely policy interventions.

He cited increasing concern about rising input costs, working capital stress, supply chain disruptions, margin pressures, and increased financial burden on businesses, particularly MSMEs.

He lauded the proactive leadership of Prime Minister Narendra Modi, adding that his constant supervision and timely interventions have ensured resilience of India's supply chains despite global uncertainties, the letter said.

Khandelwal lauded the government's strategic steps such as diversification of sourcing, strengthening of logistics infrastructure, prudent fiscal management, and close monitoring of essential commodities.

These steps helped maintain stability in availability and prices, instilling confidence across the trade and industry ecosystem, the industry body said in a release.

West Asian tensions could lead to rising crude oil prices, supply disruptions, and cost escalations, impacting sectors including petrochemicals, pharmaceuticals, plastics, textiles, fertilisers, chemicals, auto components, logistics, and other energy-intensive industries, CAIT National President B.C. Bhartia said.

Exporters may face higher freight and insurance costs, shipment delays, route diversions, and payment uncertainties, impacting global competitiveness, he added.

- IANS

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Reader Comments

R
Rohit P
Forming a dedicated task force is a brilliant idea. Global crises need a coordinated, real-time response from all stakeholders - government, RBI, and industry. Proactive steps now can prevent a lot of pain for small businesses later. 👍
A
Aman W
While the suggestions are good, I hope the relief measures actually reach the grassroots level. Sometimes, announcements are made but the implementation gets stuck in red tape. Faster refunds for exporters is crucial to maintain cash flow.
S
Sarah B
Monitoring fuel prices is key. Every spike in petrol and diesel has a cascading effect on the price of everything, from vegetables to transport. Stabilising this will help control inflation across the board.
V
Vikram M
The textile sector in my city is already feeling the pinch. If freight costs go up further due to route diversions, our exports will become uncompetitive. The government must provide the insurance support CAIT is asking for. Jai Hind!
K
Karthik V
Respectfully, while lauding leadership is fine, the focus should remain squarely on concrete policy measures. Loan repayment extensions and a Credit Guarantee Scheme are practical steps that can provide immediate oxygen to MSMEs. Let's hope for decisive action.

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