Apex business chamber CII has urged the government and RBI for additional fiscal and monetary policy assistance to navigate the global uncertainty arising from the West Asia conflict. The CII praised the prompt and coordinated measures taken so far but highlighted ongoing challenges in energy, logistics, and trade sectors. Industry feedback indicates that while initial measures have helped, sectors like MSMEs, exporters, and energy-intensive industries still face operational and financial strains.
CII emphasized the effectiveness of coordinated fiscal and monetary actions during crises and suggested targeted support like liquidity assistance, credit facilitation, and trade cost management. They proposed a Conflict-Linked Emergency Credit Line Guarantee Scheme (CL-ECLGS) for affected enterprises and a moratorium for MSMEs. Additionally, CII recommended a Special Refinance Window and liquidity support through instruments like TLTRO to ensure credit flow to productive sectors.
Furthermore, CII proposed operational relief measures such as extending delivery timelines, reducing performance guarantees, and offering temporary relief in electricity tariffs. They also suggested reassessing working capital limits, enhancing cash credit limits, and reducing administrative banking charges for MSMEs and affected sectors. CII’s wishlist includes expanding the TReDS platform, rationalizing tax structures on energy inputs, and providing accelerated depreciation benefits on capital goods.
