CII Proposes 20-Point Agenda to Tackle West Asia Crisis Impact

Industry body Confederation of Indian Industry (CII) on Sunday unveiled a comprehensive 20-point agenda, urging coordinated fiscal, financial, and trade measures to cushion the Indian economy from the fallout of the ongoing West Asia crisis.

Highlighting rising global uncertainties, CII called for immediate policy interventions to stabilise investor sentiment, support businesses, and safeguard economic growth. Among its key recommendations is a temporary exemption from long-term capital gains (LTCG) tax for foreign investors in the primary market, aimed at boosting capital inflows during a period of heightened volatility.

The industry body also proposed the introduction of a time-bound Conflict-Linked Emergency Credit Line Guarantee Scheme to provide liquidity support to businesses affected by supply chain disruptions and rising input costs.

To ease pressure on micro, small and medium enterprises (MSMEs), CII suggested a three-month moratorium on loan repayments along with a restructuring window, allowing firms to manage cash flow challenges triggered by external shocks.

In the financial sector, CII recommended revisiting priority sector lending (PSL) norms to enable banks to respond more flexibly to sector-specific stress. It further urged the Reserve Bank of India to consider setting up a Special Refinance Window for MSMEs and other impacted sectors, ensuring timely access to credit.

The proposals come amid concerns that geopolitical tensions in West Asia could disrupt trade flows, push up energy prices, and increase inflationary pressures in India. CII stressed the need for close coordination between the government, financial institutions, and industry to navigate the evolving crisis.

The industry body said swift and targeted measures would be critical to maintaining economic momentum while shielding vulnerable sectors from the adverse effects of global instability.