FICCI flags West Asia conflict risks, outlines action roadmap
New Delhi: The Federation of Indian Chambers of Commerce & Industry (FICCI) on Thursday released a report titled ‘West Asia Conflict: Implications for India and Imperatives for Industry and Government’, flagging rising economic risks from ongoing geopolitical tensions and outlining a coordinated response strategy.
Based on consultations with industry stakeholders, the report assesses the cascading impact on India’s economy, particularly across energy, logistics and manufacturing supply chains. It notes early signs of stress and calls for proactive steps to address immediate risks while building long-term resilience.
For industry, FICCI recommends a two-pronged approach focused on financial stability and operational continuity. Companies are advised to adopt scenario-based planning, secure additional funding, hedge currency risks, and monitor the financial health of suppliers and customers. Strengthening insurance coverage and cybersecurity is also highlighted.
On operations, firms are urged to align production with input availability, optimise logistics, and en-hance coordination with global shipping lines.
Diversifying energy sources—through renewables, bio-fuels and electrification—along with improving energy efficiency, is seen as critical.
In the medium to long term, the report stresses supply chain diversification, reduced dependence on specific geographies, and greater domestic sourcing. It also highlights the need to accelerate energy transition, invest in green technologies, and strengthen logistics through alternative trade routes and digital tools.
On the policy front, the report calls for continued government support, including stable energy supplies, faster customs clearances, and financial relief for MSMEs.
Long-term priorities include expanding strategic reserves, boosting renewable energy, strengthening manufacturing ecosystems, and improv-ing trade infrastructure to enhance India’s economic resilience.
