New Delhi: India Inc has made a case for a conflict-linked emergency credit guarantee scheme, a temporary moratorium and restructuring window for MSMEs, and targeted liquidity support for the affected entities through refinance facilities and market operations.
The Confederation of Indian Industry (CII) has made these proposals that were formulated after extensive discussions with members of the apex industry body.
It recommended maintaining policy rates at current levels, enhancing working capital access, fast-tracking the release of dues such as Goods and Services Tax (GST) refunds, and creating a special forex swap facility for oil marketing companies to shield the economy from supply shocks triggered by West Asia conflict.
These suggestions have been submitted to the key departments and ministries in the government and will be discussed at a meeting with senior officials on Tuesday, an industry executive told ET.
In its 20-point agenda spanning immediate relief and medium-term reforms, the industry body pitched for maintaining the policy rate at current levels, signalling that inflationary pressures are supply-driven, alongside proactive liquidity management through open market operations to stabilise bond markets. It made a case for opening a forex swap window for oil and gas PSUs, like in the past, to ease dollar demand pressures, greater flexibility in priority sector lending norms, and faster export credit insurance support via Export Credit Guarantee Corp .
Over the medium term, CII advocated institutionalising crisis-response frameworks, including a standing credit facility and a dedicated export risk support mechanism, to deal with geopolitical shocks, while pushing for trade diversification, energy price stabilisation tools and stronger inter-ministerial coordination.
The Confederation of Indian Industry (CII) has made these proposals that were formulated after extensive discussions with members of the apex industry body.
It recommended maintaining policy rates at current levels, enhancing working capital access, fast-tracking the release of dues such as Goods and Services Tax (GST) refunds, and creating a special forex swap facility for oil marketing companies to shield the economy from supply shocks triggered by West Asia conflict.
These suggestions have been submitted to the key departments and ministries in the government and will be discussed at a meeting with senior officials on Tuesday, an industry executive told ET.
Monitoring Developments
Government officials are closely monitoring the developments and are in regular touch with industry to get its inputs. “The current stress on industry is clearly emanating from supply-side disruptions, and it would therefore be important for the policy response to remain supportive of production and investment,” said Chandrajit Banerjee, director general, CII. “A calibrated and well-sequenced response by the government and the Reserve Bank of India” can help ensure that temporary pressures do not translate into long-term economic damage, Banerjee said.In its 20-point agenda spanning immediate relief and medium-term reforms, the industry body pitched for maintaining the policy rate at current levels, signalling that inflationary pressures are supply-driven, alongside proactive liquidity management through open market operations to stabilise bond markets. It made a case for opening a forex swap window for oil and gas PSUs, like in the past, to ease dollar demand pressures, greater flexibility in priority sector lending norms, and faster export credit insurance support via Export Credit Guarantee Corp .
Over the medium term, CII advocated institutionalising crisis-response frameworks, including a standing credit facility and a dedicated export risk support mechanism, to deal with geopolitical shocks, while pushing for trade diversification, energy price stabilisation tools and stronger inter-ministerial coordination.
