CII's 12-Point Agenda: Tackle Energy Crisis, Protect Jobs, Contain Inflation

(MENAFN- Live Mint) New Delhi: The Confederation of Indian Industry (CII) has urged businesses to adopt practical and responsible measures amid the current energy shock triggered by the ongoing West Asia war, focusing on price stability, job protection, and a shift away from traditional fuels.

The lobby group also called for investments in clean energy, and asked companies to work with the government to create strategic buffers for critical raw materials, while also building inventories for the same.

The CII’s appeal to businesses in a statement outlining a 12-point industry agenda on Sunday comes after the government sharply lowered excise duty on petrol and diesel and imposed tax on export of diesel and jet fuel last week to ensure domestic price stability and uninterrupted supplies.

The group said the government’s“timely, measured and reassuring,” steps have helped contain inflationary pressures, sustain industrial activity and preserve confidence at a time of global uncertainty, while also supporting jobs and livelihoods across sectors.

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The situation triggered by the ongoing conflict in West Asia is a case of supply-side disruption with pressures transmitted through energy costs, logistics and working capital cycles, the CII said.

“The next phase requires industry to build on this foundation with practical and responsible actions,” the statement said, quoting CII’s director general Chandrajit Banerjee.

The lobby group said the industry should work with government in building strategic reserves and buffer mechanisms for critical raw materials, fuels and intermediate goods. Collaborative approaches to stockholding, shared infrastructure and improved data visibility can significantly strengthen national preparedness against future disruptions, it said.

Ensure stability

Businesses may“endeavour to maintain price stability by ensuring that the benefits of stable fuel prices and moderated logistics costs are transmitted to end consumers and downstream partners. This will support inflation management and reinforce industry credibility,” it said.

It also urged businesses to strengthen supply chains by identifying alternative sourcing corridors, diversifying vendor bases and building inventory buffers for critical inputs. This will reduce exposure to disruptions arising from concentrated maritime routes, it said.

CII also said that companies should prioritise the protection of employment and livelihoods by using internal efficiencies and cost management to absorb temporary shocks, thereby supporting workforce stability.

Businesses should also speed up investments in energy transition, including renewables, green hydrogen and industrial energy efficiency, it said. The current situation reinforces the need to reduce dependence on conventional fuels and build long-term energy resilience, it added.

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Prime Minister Narendra Modi urged state chief ministers to promote alternative energy sources such as biofuels, solar energy and compressed biogas, at a virtual meeting on Friday, Mint reported. The central government is closely tracking the spillover effects of the energy shock from the US-Israeli war with Iran that began on 28 February.

Chief economic advisor V. Anantha Nageswaran said in finance ministry’s monthly economic review for March that the projected 7-7.4% economic growth for FY27 now has considerable downside risks due to the West Asia war.

Nageswaran also proposed a reprioritisation of spending to build long-term buffers, not only in energy, but also in several commodities and materials. The review said the West Asia war will be felt through four channels–supply disruptions to oil, gas and fertilisers and exports, higher import prices, higher logistics costs and a possible decline in remittances by Indians in the Gulf countries.

Larger firms may support MSME partners through faster payments, better credit terms and improved order visibility, the CII said. This will ease liquidity pressures across supply chains.

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