Jamshedpur: Member of Parliament and Secretary General of the Confederation of All India Traders (CAIT), Praveen Khandelwal, along with National Joint Secretary Suresh Sonthalia, expressed grave concerns on Monday regarding the impact of the ongoing West Asia crisis on Indian trade, specifically targeting small traders and the MSME sector.
In a formal letter dispatched to Union Finance Minister Nirmala Sitharaman, the trade leaders requested immediate relief measures and policy interventions to shield the economy from global volatility.
Impact on Key Sectors
The leaders warned that rising crude oil prices and supply chain disruptions caused by tensions in West Asia could trigger a domino effect across several energy-dependent industries, including:
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Petrochemicals & Chemicals
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Pharmaceuticals & Plastics
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Textiles & Fertilizers
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Auto Components & Logistics
CAIT National Chairman Brijmohan Agarwal and National President B.C. Bhartia noted that exporters face surging freight and insurance costs, shipment delays, and rerouting challenges that threaten India’s global competitiveness.
Proposed Relief Measures
Suresh Sonthalia highlighted that MSMEs are already feeling the pressure of shrinking profits and increased debt. To combat this, CAIT has urged the government to implement the following:
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Debt Relief: Additional time for MSMEs and small traders to repay loans.
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Credit Guarantees: A special credit guarantee scheme for sectors hit hardest by the crisis.
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Interest Subsidies: Financial support for severely impacted industries.
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Price Monitoring: Continuous stabilization measures for fuel and raw material costs.
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Export Support: Faster refunds and assistance with freight and insurance costs.
Call for a “Response Task Force”
The Confederation strongly suggested the formation of a “West Asia Impact Assessment and Response Task Force.” This body would include representatives from relevant ministries, the RBI, trade organizations, and economic experts to monitor the situation in real-time and make swift policy decisions.
Sonthalia expressed confidence that proactive steps under the leadership of Prime Minister Narendra Modi would maintain India’s economic stability. “Timely action is the only guarantee for economic security,” he stated.
