The Union Cabinet has approved ECLGS 5.0, a new Emergency Credit Line Guarantee Scheme aimed at easing credit access for MSMEs and airlines hit by disruptions tied to the West Asia crisis. The government expects up to Rs 2.55 lakh crore in credit support, including Rs 5,000 crore for airlines, backed by guarantees, capped lending rates, and extended repayment timelines.
India’s cabinet has approved an emergency credit guarantee program worth 181 billion rupees (about $1.9 billion) to support businesses facing liquidity stress linked to the Middle East crisis. The measure is designed to help firms, particularly smaller enterprises, keep operations running when cash flow is disrupted, by easing access to credit through guarantees.
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The Cabinet has approved ECLGS 5.0, an Emergency Credit Line Guarantee Scheme aimed at shielding airlines and MSMEs from mounting economic strain amid Gulf war-related uncertainty. The package is set to unlock significant additional credit. In parallel, the government has also cleared plans for two semiconductor units, railway infrastructure, and a ship repair facility to spur industrial capacity and jobs.
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