Work-from-home may stage a comeback amid West Asia war

India Inc could delay private sector capital expenditure and adopt measures to conserve energy such as work-from-home while the ongoing West Asia war disrupts supply chains and raises input costs, noted business leader Anant Goenka said on Monday, April 6.

Goenka, Vice Chairman of the RPG Group and President of FICCI, told CNBC-TV18 that supply chain risk is the first area of impact companies should be ready for.

He flagged that uncertainty in raw material supplies has caused stress across sectors,

warning that companies are operating in a “hand-to-mouth" environment.

"I'd say one is (to) avoid nice-to-do capex until some clarity is established, secure additional funding lines from banks, hedging of currencies," Goenka told CNBC-TV18's Ashmit Kumar.

Extending work-from-home, he highlighted, is a "very easy option," especially as most workplaces have already been through such arrangement during the COVID-19 pandemic and are "mentally adjusted" to that.

Highlighting risks to smaller businesses, Goenka called for urgent government intervention to support micro, small and medium enterprises (MSMEs). Suggested measures include expanding credit guarantee schemes, considering moratoriums and fast-tracking approvals, alongside stronger export credit support.

He also emphasised the need for clear guidelines on force majeure to protect MSMEs from penalties on delayed deliveries caused by war-related disruptions.

“Primary focus on MSMEs… and clarity on force majeure can have a large impact,” he said, adding that prolonged uncertainty could lead to deeper business disruptions, including potential factory stoppages in the coming weeks.

Also Read: West Asia conflict has escalated into a ‘systemic tremor,’ says FM