West Asia crisis: CII outlines 12 point industry agenda; commends Govt response

Industry body CII on Sunday commended the Government for its “swift, coordinated and well-calibrated response” to the disruptions arising from the West Asia crisis, and laid out a 12-point agenda for India Inc to complement these efforts.

CII Director General Chandrajit Banerjee said while the policy response has mitigated immediate risks, the evolving situation requires continued coordination between the Government and industry.

“The policy approach has correctly focused on maintaining production continuity and supporting viable enterprises,” Banerjee noted. “The next phase requires industry to build on this foundation with practical and responsible actions.”

Banerjee emphasised that 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 and maintaining macroeconomic stability.

Industry deeply appreciates both the intent and the execution.

He added that “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.”

CII observed that the present situation represents a supply-side disruption, with pressures transmitted through energy costs, logistics and working capital cycles.

The industry lobby has outlined a set of actions 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.

Four, 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 the 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.

Banerjee said, “The Government has created a strong enabling framework. Industry can complement this by ensuring continuity, supporting smaller enterprises and maintaining confidence across the economy. Such a coordinated approach will help India navigate the present situation while strengthening long-term resilience.”