The Union Ministry of Finance is preparing early steps to support sectors that may face problems due to the ongoing Iran war, according to sources.
The government is planning to launch a new credit scheme worth more than Rs 2 lakh crore. This scheme will be similar to the Emergency Credit Line Guarantee Scheme (ECLGS) that was introduced during the Covid-19 period to help businesses.
The main aim of this scheme is to protect sectors that depend on exports, as they may be affected by global disruptions caused by the war. Among all sectors, MSMEs (Micro, Small and Medium Enterprises) are considered the most vulnerable. This is because they are highly sensitive to changes in interest rates and fluctuations in demand.
The Department of Financial Services under the Finance Ministry is currently working on the details of the scheme. According to sources, the scheme could be launched within the next 15 days.
Under this proposed scheme:
- Businesses, especially MSMEs, may get collateral-free loans
- These loans will likely be supported by a government guarantee
- The aim is to provide a financial cushion if economic stress increases
Government officials have clarified that there is no immediate stress in the economy right now. However, the government wants to stay prepared in advance. Even if the war ends soon, some sectors may take time to recover, so this step is being taken as a precaution.
Key Highlights of the Proposed Scheme:
- Credit support of over Rs 2 lakh crore is being considered
- The scheme will be based on the Covid-era ECLGS model
- Focus will be on export-related and vulnerable sectors
- MSMEs are expected to benefit the most
- Collateral-free loans with government backing may be provided
- The scheme could be launched within 15 days
- No current crisis, but early preparation is underway
This development comes just a day after the government released economic data for March.
According to official figures:
- GST collections increased by 8.8% compared to last year
- Domestic passenger vehicle sales rose sharply by 16.3%
- Power consumption increased by 1.8% to 149.56 billion units
- Railway freight loading grew by 3.4% to 166.2 million tonnes
These numbers show that the Indian economy is still strong and stable, even with the global challenges arising from the Iran war.
