NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI) has flagged early signs of economic stress across sectors due to the ongoing West Asia conflict, urging both businesses and the government to take proactive steps to manage immediate risks while building long-term resilience. In its report, “West Asia Conflict: Implications for India and Imperatives for Industry and Government,” FICCI recommends a two-pronged approach for industry focusing on financial stability and operational continuity.
On the financial side, companies are advised to adopt scenario-based planning by preparing crisis-specific budgets that account for disruptions of varying durations. Businesses should secure additional funding lines and hedge against currency volatility to safeguard cash flows. They are also encouraged to assess the financial health of key suppliers and customers, review insurance coverage, and strengthen cybersecurity frameworks to manage emerging risks.
Operationally, firms are urged to prioritize demand, align production with the availability of critical inputs, and improve logistics efficiency through shipment consolidation and closer coordination with global shipping partners. Some organizations have already set up cross-functional “war rooms” to respond quickly to supply chain disruptions and ensure continuity.
The report also highlights the importance of energy flexibility. Companies should diversify their energy mix by exploring alternatives such as biofuels, electrification, solar power, piped natural gas, and coke oven gas. Improving energy efficiency through audits, optimized equipment use, and AI-driven monitoring systems is also recommended. (IANS)
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