March 22, 2026 - In a statement issued today, Mr Chandrajit Banerjee, Director General, CII, said, "The conflict in the Middle East has disrupted critical maritime routes and placed pressure on global supply chains, energy markets, and both imports and exports. Indian companies are experiencing downstream effects, from shipment delays to constraints in key energy inputs, as well as emerging shortages in essential raw materials and intermediates across several sectors that rely heavily on timely cross border flows. India, however, entered this period from a position of strength, supported by sustained reforms and the Government’s emphasis on Atmanirbharta, which have significantly enhanced the economy’s self- resilience".
"The response from Indian Government and Indian industry has been quick, calibrated and continuous as we move along. The Government has moved decisively on several fronts- crude diversification, LPG production maximisation, export facilitation and currency stabilisation.
This situation reinforces the strategic importance of accelerating India’s transition towards sustainable and self-reliant energy systems. India’s ongoing investments in renewable energy, green hydrogen, biofuels, and energy efficiency are not only climate commitments but also strategic imperatives that reduce exposure to geopolitical energy shocks.
Indian Industry is not a passive recipient of these shocks. It is actively accelerating energy diversification, optimising supply chains and protecting jobs. The Government’s industry-supportive measures, such as RELIEF to help companies manage operational pressures, is very timely. Government’s proactive outreach to Indian nationals in the Gulf and continuous consular support reflect India’s preparedness in a fast changing regional environment.
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. 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.
The challenge is significant but so is our country’s capacity to respond proactively, securing all our interests.