The Confederation of All India Traders (CAIT) has called on the government to introduce credit and liquidity measures, particularly for MSMEs, due to concerns over the West Asia crisis affecting India’s trade and industry. CAIT has proposed extending and easing loan repayments for MSMEs and small traders, along with the launch of a special Credit Guarantee Line Scheme to enhance liquidity. Additionally, the association has requested interest subvention for severely affected sectors, close monitoring of fuel and raw material prices, insurance support, and expedited refunds for exporters, as per an official statement.
Member of Parliament and Secretary General Praveen Khandelwal emphasized that the ongoing conflict could have a significant impact on small businesses and MSMEs, urging the government to take timely precautionary and relief actions. Khandelwal also recommended the establishment of a ‘West Asia Impact Assessment & Response Task Force’, comprising representatives from key ministries, RBI, trade bodies, and sectoral experts, to assess the evolving situation continuously and propose timely policy interventions. He highlighted concerns such as rising input costs, working capital stress, supply chain disruptions, margin pressures, and increased financial burden on businesses, especially MSMEs.
Acknowledging the proactive leadership of Prime Minister Narendra Modi, Khandelwal commended the government’s strategic measures, including sourcing diversification, logistics infrastructure strengthening, prudent fiscal management, and essential commodities monitoring. These initiatives have helped ensure stability in availability and prices, fostering confidence within the trade and industry ecosystem, as stated by the industry body. CAIT National President B.C. Bhartia warned that West Asian tensions could result in higher crude oil prices, supply disruptions, and cost escalations affecting various sectors like petrochemicals, pharmaceuticals, plastics, textiles, fertilizers, chemicals, auto components, logistics, and other energy-intensive industries. Exporters may encounter challenges such as increased freight and insurance costs, shipment delays, route diversions, and payment uncertainties, impacting their global competitiveness.
