CII Calls For Govt Support As West Asia Crisis Weighs On MSMEs

ENA MSME 2026-03-25 14:56:38 New Delhi, Mar 25 (KNN) The Confederation of Indian Industry (CII) has called on the government to extend targeted support to the micro, small and medium enterprise (MSME) sector in view of ongoing disruptions linked to the West Asia crisis. The industry body highlighted significant challenges faced by MSMEs due to evolving geopolitical developments in West Asia. These include longer shipping routes, increased transit times, and rising freight and insurance costs, which are placing additional pressure on smaller businesses. In a letter to MSME Secretary S C L Das, CII Director-General Chandrajit Banerjee cautioned that prolonged disruptions could lead to production slowdowns across sectors, reported Business Standard. CII noted instances where export consignments have been delayed, stranded at ports, or even returned to India. To address this, it has suggested measures such as warehousing support at nominal charges and a simplified customs framework for re-import of goods. The industry body said, Temporary relaxation or fast-track approvals related to import restrictions, quality certification, or standards requirements may be considered for critical raw materials to enable Indian companies to source supplies from alternative countries where necessary. Impact on Key Sectors CII flagged concerns across sectors such as glass, ceramics, chemicals, and metals, which rely on continuous furnace-based operations. Any disruption in gas supply could lead to operational shutdowns and significant financial losses. Additionally, shortages and delays have been reported in the supply of key materials, including polymers, petrochemical intermediates, metal scrap, and solvents such as methanol. Financial Stress and Export Risks CII noted that volatility in raw material prices is affecting the margins and financial sustainability of MSMEs. Many enterprises dependent on imports from West Asia are facing uncertainties in availability and delivery timelines. Export-oriented sectors are also experiencing potential disruptions in shipments to the Gulf region, Europe, and other markets due to logistical delays. Such developments may affect export schedules and contractual commitments of Indian companies, including MSMEs that supply components and services to larger exporters, the letter read. The industry chamber suggested that government engagement with shipping companies and logistics providers could help stabilise freight rates and improve visibility on shipping schedules. (KNN Bureau) 45578 https://knnindia.co.in/news/newsdetails/msme/cii-calls-for-govt-support-as-west-asia-crisis-weighs-on-msmes 2026-03-25 14:56:38 knnindia.co.in CII Calls For Govt Support As West Asia Crisis Weighs On MSMEs