New Delhi, Mar 30 (KNN) The Central Government is likely to announce additional relief measures for vulnerable sectors, including Micro, Small and Medium Enterprises (MSMEs), if the ongoing West Asia conflict persists, sources said.
The move is aimed at helping businesses manage rising costs while keeping inflation under control in the domestic market.
The Union Finance Ministry’s monthly publication in its latest issue has stated that India will need to provide immediate relief to the most affected and vulnerable businesses and households.
The Monthly Economic Review for the month of March 2026 also called for generating fiscal space to meet strategic and long-term needs underscored by the ongoing conflict such as the need to build long-term buffers in several commodities and materials besides energy-related ones.
Fuel Tax Cuts and Export Duty Measures
As part of its initial response, the government has already reduced additional special excise duty on diesel and petrol to cushion consumers against rising global crude prices.
At the same time, duties on the export of diesel and aviation turbine fuel (ATF) have been reintroduced to ensure adequate domestic availability.
Global crude oil prices have surged significantly since the escalation of hostilities involving the United States, Israel, and Iran, briefly touching USD 119 per barrel earlier this month before moderating to around USD 100 per barrel.
India remains heavily dependent on energy imports, sourcing nearly 88 percent of its crude oil and about half of its natural gas requirements from overseas markets, much of it routed through the strategically critical Strait of Hormuz.
Disruptions in this region have increased concerns over supply stability, logistics, and costs.
Support Measures for Exporters
To ease pressure on exporters, the government has introduced several measures, including relaxations in meeting export obligations amid supply chain disruptions.
It has also launched the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme, with an outlay of Rs 497 crore, to offset the impact of rising freight costs, higher insurance premiums, and war-related risks.
The initiative is expected to support MSME exporters, prevent order cancellations, and safeguard employment in the export sector.
Federation of India Micro, Small and Medium Enterprises (FISME) President, SK Jain said, “MSMEs across sectors from textiles and engineering to chemicals and metals are facing an unprecedented cost liquidity squeeze driven by volatile raw material prices, energy shortages, and severe logistics disruptions. Sharp increases in steel, polymers, cotton, LPG, and freight costs, coupled with shipment delays and working capital blockages, are eroding operations and threatening export competitiveness of MSMEs.”
“FISME urges the government to act swiftly through raw material price stabilization, reduction of import duties on critical inputs, assured energy supply at subsidized industrial tariffs, and immediate freight and logistics support. Equally critical is easing liquidity through enhanced working capital limits, interest subvention, faster GST refunds, and emergency credit lines for exporters”, he added.
In a further relief, the government has restored full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for all eligible export products.
The decision follows concerns raised by exporters after earlier reductions in benefit rates. The restoration will remain effective from February 23, 2026 to March 31, 2026, as notified by the Directorate General of Foreign Trade.
Rising Logistics and Operational Challenges
Escalating security concerns in West Asia have led to vessel diversions, longer shipping routes, congestion at transshipment hubs, and the imposition of conflict-related surcharges.
These developments have increased logistics costs and created uncertainty for export consignments, particularly those routed through or destined for the region.
Officials indicated that the government remains prepared to introduce further targeted interventions to support vulnerable sectors and maintain economic stability if geopolitical tensions continue to disrupt global trade and energy markets.
(KNN Bureau)
