Our Bureau
New Delhi
The Indian government is set to launch a big Rs 2 lakh crore credit scheme. This will help sectors hurt by the US-Iran conflict in the Middle East. The Finance Ministry wants to act fast to ease stress on businesses.
Top sources say the plan is like the Emergency Credit Line Guarantee Scheme from the Covid days. It will offer loans without collateral, backed by government guarantees. The Department of Financial Services is finishing details. The scheme could start in 15 days. Banks will lend more easily to affected firms. This aims to stop bad loans from rising.
The Middle East crisis has hit India hard beyond oil. Crude oil imports from West Asia cost $70 billion in 2025. LNG supplies, worth $9.2 billion or 68.4% of total, face risks too. Petronet LNG stopped deliveries to GAIL from March 4, 2026, due to ship curbs in the Strait of Hormuz and production disruption in Qatar.
Fertiliser units, power plants, and city gas networks need LNG. Attacks on Gulf sites in Saudi Arabia, Qatar, UAE, and Oman since March 1 have raised fears. Diamond trade, exports, and other inputs like LPG may suffer if fights go on. Experts warn of supply shocks to farms, factories, and homes.
This move shows the government’s quick response to global tensions. It seeks to protect jobs and growth amid tight oil markets. Businesses wait for the green light to borrow and recover.
