India Gears Up to Shield Economy Amid West Asia Crisis

Amid the prolonged West Asia crisis, the Indian government is considering more relief packages to support vulnerable sectors, notably the MSME sector. Measures include reduced excise duties and a scheme to aid exporters affected by geopolitical tensions, aiming to sustain the economy and control inflation.

The Indian government is poised to announce additional relief measures for the most vulnerable parts of the economy should the West Asia conflict persist, according to sources. The measures already taken include slashing excise taxes on petrol and diesel, ensuring that inflation remains in check domestically.

Easing export tariffs and launching the RELIEF scheme, worth Rs 497 crore, appear as strategic moves to mitigate the impact of escalating shipping and insurance costs due to the turmoil in the Middle East. This initiative is crucial for sustaining jobs and protecting the MSME export sector from further adversities.

Chief Economic Advisor V Anantha Nageswaran emphasized the necessity for immediate support to the severely affected businesses and households, alongside fostering fiscal resilience. Despite global uncertainties, India's sound macroeconomic fundamentals and robust domestic demand could help absorb the geopolitical shocks to some extent.

(With inputs from agencies.)