CII Applauds Govt's West Asia Crisis Response, Proposes 12-Point Industry Plan

CII observed that the present situation represents a supply-side disruption, with pressures transmitted through energy costs, logistics and working capital cycles. While the policy response has mitigated immediate risks, the evolving situation requires continued coordination between the government and industry.

CII Director General Chandrajit Banerjee said, "The government's response has been timely, measured and reassuring. It reflects a whole-of-government approach that has focused on keeping supply chains functional, supporting exporters, protecting households from the rise in global oil prices and maintaining macroeconomic stability. Industry deeply appreciates both the intent and the execution."

"These measures have helped contain inflationary pressures, sustain industrial activity and preserve confidence at a time of global uncertainty, while also supporting jobs and livelihoods across sectors," he added.

CII has outlined a 12-point action plan that the industry may consider in the current context. One, the 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.

Two, 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.

Three, 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.

Five, 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.

Six, 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.

Seven, companies may prioritise protection of employment and livelihoods by using internal efficiencies and cost management to absorb temporary shocks, thereby supporting workforce stability.

Eight, larger firms may support MSME partners through faster payments, better credit terms and improved order visibility. This will ease liquidity pressures across supply chains.

Nine, companies may enhance energy efficiency and operational optimisation across processes to reduce exposure to fuel cost volatility.

Ten, exporters and manufacturers may strengthen risk management practices, including logistics planning, insurance coverage and receivables management, to improve resilience in uncertain conditions.

Eleven, firms may invest in technology and data systems that improve supply chain visibility and operational flexibility, enabling quicker response to disruptions.

Twelve, companies may review procurement and contracting practices to build greater flexibility in sourcing, pricing and delivery timelines, thereby reducing vulnerability to sudden external shocks.

CII noted that since the onset of the crisis on February 28, the government has acted decisively across multiple fronts to safeguard energy supplies, support exports, stabilise markets and protect vulnerable sections, while maintaining confidence in the economy.

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.

- IANS