New Delhi, April 5 -- Supply-side pressures arising from the West Asia war continue to persist, and businesses need targeted liquidity support, industry lobby group Confederation of Indian Industry (CII) said on Sunday.

The next phase of policy response needs to focus on targeted liquidity support, credit facilitation, trade cost management and foreign exchange stability, it said in a statement outlining 20 steps required to address the spillover effects of the war on the Indian economy.

Chandrajit Banerjee, director general, CII, said in the statement that the government's and the Reserve Bank of India's (RBI) early measures have helped stabilize sentiment, underscoring policy responsiveness in the face of external shocks.

But the sit...