CII’s 20-Point Policy Agenda Calls for a Coordinated Fiscal, Financial, and Trade Response to the West Asia Crisis

The Confederation of Indian Industry (CII) sent the Government of India and the Reserve Bank of India (RBI) a full 20-Point Policy Agenda on April 05, 2026. This agenda lays out a plan of coordinated fiscal, financial, trade, and regulatory steps that will help the Indian economy deal with and adjust to the economic disruption caused by the conflict in West Asia.

In late March 2026, CII released a 12-point industry agenda that listed things that Indian businesses could do. Later, CII gave the Government of India and the Reserve Bank of India (RBI) a more detailed 20-point policy agenda.

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This new, more complete document is meant to work with what the government is already doing and give extra help to vulnerable sectors like MSMEs, exporters, and energy-intensive industries that are still dealing with the stress of rising energy costs, supply chain problems, and financial problems caused by the war.

Speaking on this, Chandrajit Banerjee, who heads CII as Director General, noted that –

“The Government and the RBI have responded with speed, clarity, and coordination. The early measures have helped stabilise sentiment and demonstrate that India's policy framework is both responsive and resilient in the face of external shocks. India's experience during previous crises has shown that coordinated fiscal and monetary action can significantly strengthen resilience. The next phase of policy response may therefore need to focus on targeted liquidity support, credit facilitation, trade cost management, and foreign exchange stability.”

Below is a detailed breakdown of the 20‑point policy agenda CII has recommended

1. The Ministry of Finance may introduce a time-bound Conflict-Linked Emergency Credit Line Guarantee Scheme (CL-ECLGS). This would be similar to the scheme used during the pandemic. It would allow banks to give extra working capital loans without collateral. These loans would be backed by government guarantees. This will particularly target MSMEs, exporters, and gas-dependent sectors.

2. The RBI may allow a temporary three-month moratorium for MSMEs. This should especially cover exporters and units linked to export supply chains. It could also allow a short restructuring window. Loan classification rules may be relaxed for a limited time. This means delays in tagging loans as SMA or NPA, but only for sectors clearly affected.

3. The RBI could set up a Special Refinance Window for MSMEs and other sectors that are affected due to the war. It would give money through tools like Targeted Long Term Repo Operations (TLTRO). This would help banks and non-bank financial companies keep lending at reasonable rates.

4. The Ministry of Finance and the RBI could help with contracts and operations right away. There would be no penalties for extending the delivery dates on Central and State PSU contracts by 3 to 4 months. It might be possible to lower the requirements for Performance Bank Guarantee and Security Deposit. Temporary cuts in electricity rates may also help businesses deal with rising costs.

5. Banks may be allowed, for a limited time, to review and increase working capital limits. This will be majorly for the exporters and gas-dependent units facing temporary stress. Cash credit limits could be increased by up to 20%. Lending terms may also be made more flexible during this period.

6. A temporary reduction or waiver of administrative banking charges could be introduced. This includes loan processing fees, foreign exchange charges, and documentation costs.

7. The Trade Receivables Discounting System (TReDS) platform may be expanded in affected industrial clusters. This would help businesses get quicker access to cash through invoice discounting. At the same time, pending GST refunds, duty drawback claims, and RODTEP dues should be cleared on a fast-track basis.

8. The Ministry of Finance would look at cutting taxes and duties on energy stuff for a little while. That might ease up the costs from all the disruptions going on. Like with LNG imports, they have this about 2.5% customs duty, and waiving it temporarily seems like it may make a difference.

9. The government might consider giving a break on long-term capital gains tax, just for the foreign investors, investing in primary markets. It would also extend the holding period from two years to three, which might push for more long-term investments instead of quick exits.

10. On the capital goods side, accelerated depreciation benefits may be introduced, including equipment bought locally. GST input credit on such goods could also be refunded within 3-6 months. This would encourage companies to invest early and support domestic manufacturing.

11. Over the medium term, a standing MSME Crisis Response Framework could be set up. This would include a Logistics Relief Protocol and a Crisis Credit Facility. It should have pre-defined triggers and activate within 48 hours of a disruption. This would ensure timely support before problems grow.

12. The Ministry of Finance may adopt a balanced approach to subsidies, especially in fertilisers. It could gradually shift towards Direct Benefit Transfer (DBT). Better targeting could be achieved by linking support to land size, cropping patterns, and soil health. This would improve efficiency while protecting vulnerable groups.

13. A special foreign exchange swap window could be created for oil and gas PSUs. This would help them meet their US dollar needs. It would also reduce volatility in the forex market and limit pressure on reserves.

14. The RBI could announce an Open Market Operations (OMO) purchase plan. It could also carry out liquidity operations when needed. This would ensure stability in the government bond market and prevent sharp changes in yields.

15. The government may support trade diversification efforts. It could also invest in alternative transport routes. This would reduce dependence on a single region for trade and energy supply.

16. Over the medium to long term, a formal Economic Shock Response Framework could be developed. This would include clear action plans for different crisis levels. For example, responses could be linked to oil price thresholds such as $100, $150, or $200 per barrel. It would ensure better coordination across policy areas.

17. Priority Sector Lending (PSL) norms could be reviewed. This would allow banks to respond more flexibly to sector-specific stress. In addition, better credit infrastructure using Credit Information Companies (CICs) could speed up financing for infrastructure projects.

18. A permanent Conflict-Linked Export Risk Support Facility could be created within the Export Credit Guarantee Corporation (ECGC). It would have clear rules and triggers. This would help exporters manage risks during global conflicts.

19. Stronger coordination is needed between the Ministry of Finance, the Ministry of Commerce and Industry, ECGC, and EXIM Bank. This would strengthen the export credit and insurance system. It would also support exporters facing higher costs.

20. An institutionalised coordination system could be set up across ministries and industry bodies. This would allow real-time monitoring of sector stress. It would also ensure faster and smoother policy responses during crises.

In summary, CII’s 20-point agenda is best seen as a bridge package. it addresses immediate stress in MSMEs, exporters, and energy-intensive sectors while also laying the groundwork for a more durable crisis-response architecture. The core message is that India should respond to the West Asia shock with coordinated fiscal, monetary, trade, and regulatory action rather than isolated measures.