Industry associations have warned of a potential exodus of migrant labour in India due to a supply squeeze of cooking fuel caused by the West Asia war.
The Confederation of Indian Industry (CII) said several sectors continue to face operational and financial stress, citing industry feedback.
India SME Forum president Vinod Kumar pointed to growing labour instability across the country's 78.9 million MSMEs, which employ about 340 million workers.
Energy price volatility has hit key industrial hubs, including ceramics in Morbi, glass in Firozabad, foundries and forging units in Ludhiana and Kolhapur, and textile processing in Tiruppur and Surat.
The India SME Forum has asked its members to organise community kitchens so workers can get two square meals, and the government must support setting up temporary canteens in key MSME clusters.
Industries in parts of Gujarat have already begun setting up such facilities.
The CII proposed several measures for immediate, short term and longer term consideration, including a time-bound conflict-linked Emergency Credit Line Guarantee Scheme (CL-ECLGS) providing additional collateral-free working capital to affected enterprises.
Other recommendations include a three-month interest moratorium, contractual relief for the industry by extending delivery timelines in supplies to the government entities, and a time-bound rationalisation of the tax and duty structure on energy inputs.
