India is getting ready to launch a $26.7 billion (about ₹2.5 lakh crore) sovereign credit guarantee program to help companies affected by the current war in the Middle East.
The four-year initiative, which is modeled after the pandemic-era Emergency Credit Line Guarantee Scheme, will provide up to 90% guarantee on loans, lowering lender risks and guaranteeing credit flow to vulnerable industries. The National Credit Guarantee Trustee Company will oversee the guarantees for loans up to ₹100 crore.
Among the most severely affected are export-oriented sectors like glass and textiles, which are dealing with supply chain disruptions, declining demand, and growing input costs. Due to rising petroleum costs and uncertainty throughout the world, India’s $174 billion textile industry has seen growth difficulties.
Financial markets have responded as well; during the January–March quarter, the Nifty 50 fell precipitously.
During the ongoing geopolitical crisis, the program seeks to support industrial operations, stabilize credit, and reduce economic risks.
Source – Newsable Asianet News
