Credit guarantee scheme to help MSMEs facing global headwinds - Sitharaman
This story was originally published at 22:15 IST on 7 May 2026
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--Sitharaman: MSMEs facing difficulty because of West Asia war, US tariff
--CONTEXT: Finance Minister Sitharaman at an event in Dadra and Nagar Haveli
NEW DELHI – India's micro, small and medium enterprises are facing challenges due to the ongoing West Asia war and uncertainties around US tariffs, Finance Minister Nirmala Sitharaman said Thursday. In order to address these challenges, the government has introduced Emergency Credit Line Guarantee Scheme 5.0, providing credit support to small businesses, Sitharaman said at an event in Dadra and Nagar Haveli and Daman and Diu.
On Tuesday, the Union Cabinet had approved INR 181 billion for the scheme. The government is aiming at a total additional credit flow of INR 2.55 trillion under the scheme.
Under the scheme, National Credit Guarantee Trustee Co. Ltd. will provide credit guarantee coverage of 100% for micro, small and medium enterprises and 90% for non-MSMEs, as well as the airline sector, for the amount in default under the additional credit facility extended to eligible borrowers to tide over any short-term liquidity mismatches in view of the West Asia crisis. End
Reported by Sagar Sen
Edited by Avishek Dutta
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