Middle East conflict disrupting supply chains, energy flows; Indian economy resilient: CII

In a statement, Mr.Chandrajit Banerjee, Director General of CII, said the tensions in the region have impacted critical maritime routes and created ripple effects across industries…He added that Indian companies are already witnessing operational challenges due to delays and shortages in key inputs…Despite the challenges, Mr. Banerjee noted that India entered the current situation from a strong position due to reforms and the government’s push for self-reliance…He highlighted several measures taken by the government to address the impact of the crisis.      “The Government has moved decisively on several fronts — crude diversification, LPG production maximisation, export facilitation and currency stabilisation,” he said.

Mr. Banerjee said the situation also underscores the importance of accelerating India’s shift towards sustainable energy.

“This situation reinforces the strategic importance of accelerating India’s transition towards sustainable and self-reliant energy systems,” he said.

He added that investments in renewable energy and alternative fuels will help reduce vulnerability to geopolitical shocks…CII said it is working closely with the government and industry stakeholders to monitor the situation and address supply chain vulnerabilities.

“CII continues to work closely with the Government and industry to monitor supply chain vulnerabilities, address raw material and intermediate shortages, and provide real time feedback from affected sectors,” Mr.Banerjee said… “While the situation remains challenging, we are confident that the Government’s whole of government approach, combined with its partnership driven engagement with all stakeholders, will help India withstand this shock and preserve its forward economic momentum,” he added.