CII Suggests Gradual Return of Rs 10 Fuel Excise Amid West Asia Crisis
New Delhi, May 10: The Confederation of Indian Industry (CII) has proposed a five-point action plan to help India manage the economic impact of the ongoing West Asia crisis. One of its key recommendations is the gradual restoration of the Rs 10 per litre excise duty cut on petrol and diesel over the next six to nine months.
According to CII, the phased rollback should happen once global crude oil prices stabilise, helping the government strengthen revenues without causing sudden pressure on consumers.
Private Capex Sees Massive Growth
CII highlighted that India’s private capital expenditure surged 67% year-on-year, rising from Rs 4.6 lakh crore to Rs 7.7 lakh crore by September 2025. The industry body described this as a strong sign of revival in India’s investment cycle.
Manufacturing contributed nearly Rs 3.8 lakh crore to total investments, led by sectors such as metals, automobiles, and chemicals. Meanwhile, the services sector added around Rs 3.1 lakh crore, driven by trading, communications, and IT/ITeS industries.
CII’s 5-Point Economic Action Plan
To tackle global uncertainty and rising geopolitical risks, CII proposed the following measures:
- Gradual rollback of fuel excise cuts
- Voluntary energy-saving initiatives by industries
- Guaranteed MSME payments within 45 days
- Stronger supply-chain localisation and inventory buffers
- Faster private investments with voluntary price restraint
The organisation also urged companies to reduce fuel and electricity consumption by 3-5% over the next two quarters through logistics optimisation, renewable energy adoption, and fleet electrification.
Focus on MSMEs and Supply Chains
CII recommended that large corporations support MSMEs by ensuring quicker payments through platforms like TReDS and supply-chain financing systems. This move aims to ease working capital pressure on smaller businesses during periods of global volatility.
The industry body also stressed the importance of reducing import dependency by boosting domestic manufacturing in sectors such as speciality chemicals, industrial components, and capital goods.
India’s Economic Fundamentals Remain Strong
CII credited the government’s reforms and infrastructure push for improving investor confidence. It pointed to strong macroeconomic indicators including:
- Average GDP growth of 7.3% over the last three years
- Inflation moderation
- Forex reserves above $700 billion
- Record exports of $863 billion in FY26
Industry leaders believe stronger collaboration between businesses and the government will help India maintain growth momentum despite challenges arising from the West Asia conflict.
