Industry–Government Synergy Amidst the West Asia Crisis: CII 12-Point Agenda for Resilience

In the face of evolving global uncertainties, particularly the disruptions stemming from the West Asia crisis, the role of coordinated action between Government and Industry has never been more critical. The Confederation of Indian Industry (CII) has articulated a comprehensive 12-point industry agenda that not only acknowledges the Government of India’s timely and calibrated response but also calls upon industry stakeholders to act responsibly in reinforcing economic stability and resilience.

The Government’s response has been widely regarded as measured, timely, and reassuring. By focusing on maintaining supply chain continuity, supporting exporters, safeguarding households, and preserving macroeconomic stability, policymakers have demonstrated a holistic approach to both intent and execution amidst this unprecedented crisis. These efforts have played a crucial role in containing inflationary pressures, sustaining industrial activity, and preserving confidence across sectors during a period of heightened global volatility, while also supporting jobs and livelihoods across sectors.

CII rightly observes, the current situation being fundamentally a supply-side disruption, with pressures transmitted through rising energy costs, logistical bottlenecks, and tightened working capital cycles. While immediate risks have been mitigated, the path forward requires deeper collaboration and proactive measures from industry to build long-term resilience.

To this end, CII has outlined a clear 12-point agenda for Industry action:

1. Strategic Reserves and Buffer Mechanisms: Industry may collaborate with the Government to build strategic reserves for critical raw materials, fuels, and intermediate goods. Shared infrastructure and improved data visibility can enhance national preparedness against future disruptions.

2. Price Stability: Companies may endeavour to maintain price stability by passing on the benefits of moderated fuel and logistics costs to consumers and downstream partners, thereby supporting inflation management and reinforcing trust.

3. Supply Chain Resilience: Firms may strengthen resilience by diversifying sourcing strategies, identifying alternative corridors, and maintaining calibrated inventory buffers to reduce exposure to concentrated trade routes.

4. Energy Transition Investments: Companies may accelerate investments in renewable energy, green hydrogen, and industrial energy efficiency to reduce dependence on conventional fuels and build long-term energy resilience.

5. Shift to Efficient Energy Sources: Wherever feasible, firms may explore switching from LPG to natural gas and other efficient energy options to optimise costs and support a cleaner energy mix.

6. Fuel Efficiency in Food Services: Businesses operating institutional kitchens and large food services may adopt innovative solutions such as electric or bio-based cooking methods to reduce fuel intensity.

7. Employment Protection: Companies may prioritise the protection of jobs and livelihoods by absorbing temporary shocks through internal efficiencies and cost management.

8. MSME Support: Larger firms may support MSME partners through faster payments, improved credit terms, and better order visibility to ease liquidity pressures across supply chains.

9. Operational and Energy Efficiency: Businesses may enhance energy efficiency and optimise operations to reduce exposure to fuel cost volatility.

10. Risk Management Strengthening: Exporters and manufacturers may strengthen logistics planning, insurance coverage, and receivables management to improve resilience in uncertain conditions.

11. Technology and Data Adoption: Companies may invest in advanced technology and data systems to improve supply chain visibility and operational flexibility.

12. Flexible Procurement Practices: Firms may review procurement and contracting frameworks to build greater flexibility in sourcing, pricing, and delivery timelines, thereby reducing vulnerability to external shocks.

Beyond these recommendations, the Government’s policy measures have been comprehensive and forward-looking. Initiatives such as restoring export incentives, enhancing export credit support, expanding insurance coverage, and reducing excise duties on fuel have provided timely relief to businesses. At the same time, continued emphasis on social protection has ensured that vulnerable households remain insulated from price pressures, sustaining consumption demand.

The overarching message is one of partnership. The Government has created a strong enabling framework through decisive and coordinated action. Industry, in turn, has a critical role to play in ensuring continuity, supporting smaller enterprises, and maintaining confidence across the economy.

As global uncertainties continue to evolve, the importance of economic security—spanning energy resilience, supply chain diversification, technological capability, and financial stability—will remain central to India’s growth strategy. The CII’s 12-point agenda provides a clear and actionable roadmap. CII and Indian industry remains committed to working with the Government in the national interest and expressed confidence that through coordinated policy support and responsible industry action, India will not only manage the current disruption effectively but also emerge stronger and more resilient.