New Delhi, April 6 The Confederation of All India Traders (CAIT) urged the government on Monday to implement measures to support credit and liquidity, particularly for micro, small, and medium enterprises (MSMEs), due to concerns about the ongoing crisis in West Asia and its impact on India's trade and industry.
The association called for an extension and relaxation of loan repayment terms for MSMEs and small traders, as well as the launch of a special Credit Guarantee Scheme to provide liquidity support.
Furthermore, it requested interest subvention for severely affected sectors, close monitoring and stabilization of fuel and raw material prices and freight, insurance support, and faster refunds for exporters, according to an official statement.
The conflict could particularly impact small businesses and MSMEs, and the government should take timely precautionary and relief measures, said Member of Parliament and Secretary General Praveen Khandelwal in a letter to Finance Minister Nirmala Sitharaman.
Khandelwal also strongly recommended the formation of a 'West Asia Impact Assessment & Response Task Force', comprising representatives from key ministries, the Reserve Bank of India (RBI), trade bodies, and sectoral experts, to continuously assess the evolving situation and recommend timely policy interventions.
He cited increasing concerns about rising input costs, working capital stress, supply chain disruptions, margin pressures, and increased financial burden on businesses, particularly MSMEs.
He praised the proactive leadership of Prime Minister Narendra Modi, adding that his constant supervision and timely interventions have ensured the resilience of India's supply chains despite global uncertainties, the letter said.
Khandelwal lauded the government's strategic steps such as diversification of sourcing, strengthening of logistics infrastructure, prudent fiscal management, and close monitoring of essential commodities.
These steps helped maintain stability in availability and prices, instilling confidence across the trade and industry ecosystem, the industry body said in a release.
Tensions in West Asia could lead to rising crude oil prices, supply disruptions, and cost escalations, impacting sectors including petrochemicals, pharmaceuticals, plastics, textiles, fertilizers, chemicals, auto components, logistics, and other energy-intensive industries, CAIT National President B.C. Bhartia said.
Exporters may face higher freight and insurance costs, shipment delays, route diversions, and payment uncertainties, impacting global competitiveness, he added.
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