CII Seeks Support from Finance Ministry

The Confederation of Indian Industry (CII) has submitted several suggestions to the Finance Ministry amid the ongoing crisis in West Asia. These include extending term loans on the lines of schemes implemented during the pandemic, rationalizing the tax and duty structure on energy inputs, and extending delivery timelines for contracts with central and state public sector undertakings.

The industry body has recommended extending additional collateral-free working capital through government-backed guarantees to the affected sectors, especially MSMEs, exporters, and gas-based industries, who are particularly affected by the crisis..

It has also sought temporary relief in electricity charges to help manage rising input costs during the disruption period, along with temporary reductions or waivers in administrative banking charges such as loan processing fees, foreign exchange transaction charges, and documentation costs.

On March 27, the government announced a major relief for oil companies. To shield consumers from rising prices, excise duty on petrol and diesel was reduced by ₹10 per litre. Additionally, export duties on diesel and aviation turbine fuel were reimposed to ensure adequate domestic availability.

On April 2, 2026, the Finance Ministry announced a full customs duty exemption on key petrochemical products in response to the ongoing conflict in West Asia.

Earlier, in a letter to the MSME Secretary, CII highlighted significant disruptions in shipping and logistics operations due to evolving geopolitical developments in the Middle East. To support the MSME sector, it has requested alternative sourcing of raw materials, clarity on gas supply availability, and temporary relief or waivers on port storage charges.

The industry body also emphasized growing concerns such as logistics disruptions, rising freight and insurance costs, and increasing pressure on MSMEs’ working capital due to the geopolitical situation in West Asia.

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