New Delhi, April 6: The Confederation of All India Traders (CAIT) has urged the government to implement measures aimed at enhancing credit and liquidity, particularly for small and medium enterprises (SMEs).
The association highlighted that the ongoing crisis in West Asia is directly impacting India’s trade and industry. They called for the launch of a Special Credit Guarantee Line Scheme to support liquidity. Additionally, SMEs and small traders should be granted extended time for loan repayments.
Furthermore, CAIT requested interest subsidies for severely affected sectors, close monitoring and stabilization of fuel and raw material prices, as well as freight costs. They also emphasized the need for insurance assistance and prompt refunds for exporters.
Praveen Khandelwal, Member of Parliament and General Secretary, wrote to Finance Minister Nirmala Sitharaman, stating that this conflict could significantly affect small businesses and SMEs. He urged the government to take timely precautionary and relief measures.
Khandelwal recommended forming a ‘West Asia Impact Assessment and Response Task Force’ comprising representatives from key ministries, the Reserve Bank of India, trade bodies, and regional experts. This task force would continuously assess the evolving situation and recommend policy interventions accordingly.
In his letter, he pointed out the rising input costs, pressure on working capital, disruptions in the supply chain, and the increasing financial burden on businesses, especially SMEs.
He praised Prime Minister Narendra Modi’s proactive leadership, noting that his continuous oversight and timely interventions have ensured the resilience of India’s supply chains despite global uncertainties.
Khandelwal commended the government’s strategic measures, such as diversifying sources, strengthening logistics infrastructure, prudent fiscal management, and closely monitoring essential goods.
The association stated that these actions have helped maintain stability in availability and prices, thereby boosting confidence in the business and industrial sectors.
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