Centre Assures Shield for Businesses Amid Global Turmoil

Finance minister Nirmala Sitharaman recently assured businesses that the Centre would shield them from the impact of global uncertainties, including the US tariffs on Indian exports and ongoing geopolitical conflicts in West Asia and Europe. Speaking at a book fair and industrial exhibition in Daman, she said the government has introduced several measures to support businesses, especially micro, small and medium enterprises (MSMEs), during difficult times.

Sitharaman highlighted the importance of collateral-free credit schemes such as Mudra loans and the Emergency Credit Line Guarantee Scheme (ECLGS), which was first introduced during the Covid-19 pandemic. She noted that the Union Cabinet recently approved ECLGS 5.0 to help businesses facing fresh challenges arising from the West Asia crisis.
Under the latest version of the scheme, businesses can access additional working capital without providing collateral, backed by government guarantees. The programme aims to facilitate credit flow worth ₹2.55 trillion, including ₹5,000 crore earmarked for airlines. The government will provide 100% credit guarantee coverage for MSMEs and 90% coverage for non-MSMEs and the aviation sector.

“The Prime Minister will not allow any negative impact on your business because of the external situation,” Sitharaman said while addressing entrepreneurs and traders in Daman.

The finance minister said global conflicts, including the Russia-Ukraine war and tensions involving Israel, the US and Iran, have disrupted fuel movement and pushed up fertilizer prices. To avoid any disruption in domestic cooking gas supplies, she said a ministerial committee is reviewing LPG availability every day.

Sitharaman also pointed out that collateral-free loans provided during the pandemic helped Indian businesses recover faster than many other economies, enabling India to remain the world’s fastest-growing major economy.

She urged industries in Daman to expand operations and boost exports, which would strengthen India’s foreign exchange earnings and support economic growth.