New Delhi, Apr 7 (KNN) Delhi-based Confederation of All India Traders (CAIT) has flagged concerns over the impact of the ongoing West Asia crisis on Indian trade and industry, urging the Finance Ministry to roll out timely relief measures, particularly for MSMEs.
Concerns Over Rising Costs, Supply Chain Disruptions
In a letter to Finance Minister Nirmala Sitharaman, CAIT Secretary General and Member of Parliament Praveen Khandelwal highlighted that while government interventions have helped maintain supply chain stability so far, prolonged tensions could have far-reaching economic consequences.
He cautioned that key sectors likely to be impacted include petrochemicals and chemicals, pharmaceuticals, plastics and packaging, textiles and synthetic fibres, fertilisers and auto components and paints.
CAIT noted that traders are increasingly facing rising input costs, working capital constraints and higher financial burden.
Exporters, in particular, are dealing with elevated freight and insurance costs, shipment delays and route diversions and payment uncertainties. These factors are impacting global competitiveness of Indian exports.
Relief Measures Suggested
To address the emerging challenges, CAIT has proposed several key interventions like extension and relaxation in loan repayments for MSMEs and small traders, launch of a special credit guarantee scheme to support liquidity and interest subvention for severely impacted sectors.
It also includes measures to stabilise fuel and raw material prices, freight and insurance support and faster refunds for exporters.
Khandelwal also recommended setting up a ‘West Asia Impact Assessment & Response Task Force’, comprising key ministries, the Reserve Bank of India, trade bodies and sectoral experts.
The proposed task force would monitor the evolving situation and recommend timely policy responses.
Outlook
CAIT expressed confidence that proactive and targeted government action can help India navigate global uncertainties and safeguard the interests of traders and MSMEs.
With geopolitical tensions intensifying, industry bodies are pushing for pre-emptive policy support to cushion MSMEs and maintain trade competitiveness.
(KNN Bureau)
2012-01-26
