New Delhi, March 29 (NationPress) The Confederation of Indian Industry (CII) expressed appreciation on Sunday for the prompt measures implemented by the Government of India in response to the challenges posed by the West Asia crisis. The CII urged industries to play a supportive role in these initiatives through responsible and proactive strategies.

CII pointed out that the current scenario signifies a disruption on the supply side, affecting energy prices, logistics, and working capital cycles. Although the government’s policy actions have alleviated immediate risks, ongoing collaboration between governmental and industrial sectors is essential to navigate the evolving circumstances.

CII Director General Chandrajit Banerjee stated, “The government's approach has been timely, balanced, and encouraging. It embodies a comprehensive governmental strategy that emphasizes maintaining functional supply chains, aiding exporters, shielding households from rising global oil costs, and ensuring macroeconomic stability. The industry values both the intention and execution of these measures.”

“Such initiatives have successfully contained inflationary pressures, sustained industrial operations, and upheld confidence amid global uncertainties, while also safeguarding jobs and livelihoods across various sectors,” he continued.

CII has proposed a 12-point action framework that industries might consider in the current climate. Firstly, industries could collaborate with the government to establish strategic reserves and buffer systems for critical raw materials, fuels, and intermediate goods. Joint efforts in stockholding, shared infrastructure, and enhanced data visibility could significantly bolster national preparedness against future disruptions.

Secondly, businesses should strive for price stability, ensuring that the advantages of stable fuel prices and reduced logistics costs are passed on to end consumers and downstream partners, thereby aiding in inflation management and reinforcing industry credibility.

Thirdly, companies should enhance supply chain resilience by identifying alternative sourcing routes, diversifying vendor networks, and developing measured inventory buffers for vital inputs, decreasing vulnerability to disruptions from concentrated maritime routes.

Fourthly, firms are encouraged to expedite investments in energy transitions, including renewable energy, green hydrogen, and increasing energy efficiency in industrial processes. This current situation accentuates the necessity to lessen reliance on traditional fuels and enhance long-term energy resilience.

Fifthly, wherever feasible both technically and economically, firms should consider transitioning from LPG to natural gas and other efficient energy alternatives. This can facilitate cost optimization while contributing to a cleaner energy mix.

Sixthly, businesses managing institutional kitchens and large food services should implement innovative strategies to lower fuel consumption, such as utilizing electric or bio-based cooking solutions and optimizing consumption practices.

Seventhly, companies should prioritize protecting employment and livelihoods by utilizing internal efficiencies and cost management to absorb temporary shocks, thereby ensuring workforce stability.

Eighthly, larger corporations should assist MSME partners by expediting payments, offering improved credit terms, and enhancing order visibility to alleviate liquidity constraints across supply chains.

Ninthly, businesses should improve energy efficiency and operational optimization across their processes to mitigate exposure to fuel cost fluctuations.

Tenthly, exporters and manufacturers should bolster risk management protocols, including logistics planning, insurance coverage, and receivables management, to enhance resilience in unstable conditions.

Eleventhly, firms should invest in technological advancements and data systems that enhance supply chain visibility and operational flexibility, allowing for quicker responses to disruptions.

Twelfthly, businesses should reassess procurement and contracting methodologies to create greater flexibility in sourcing, pricing, and delivery schedules, thereby diminishing susceptibility to sudden external shocks.

CII highlighted that since the crisis began on February 28, the government has decisively acted across various fronts to secure energy supplies, back exports, stabilize markets, and protect vulnerable populations while maintaining trust in the economy.

In terms of trade, the government has facilitated exporters by reinstating RoDTEP rates and value caps, along with targeted interventions to address freight and insurance disruptions, including the RELIEF mechanism. Enhanced export credit support and broadened ECGC coverage have played a crucial role in sustaining exporter confidence, particularly among MSMEs.