BS EDIT: Liquidity Support

By Business StandardPublished On May 7, 2026

Policy Move

The government has launched ECLGS 5.0 to support firms amid disruptions from the West Asia crisis

Credit Boost

The scheme offers full guarantees for MSMEs and wider coverage to ease access to additional credit

Sector Relief

Hard-hit sectors like aviation get targeted support as fuel costs and disruptions strain operations

MSME Cushion

Small firms, with limited buffers, gain critical liquidity to manage shocks and sustain operations

Lending Push

Credit guarantees reduce lender risk, encouraging banks to extend loans during uncertainty

Crisis Context

Energy disruptions and weak demand continue to pressure businesses across sectors

Near-Term Support

Even with easing tensions, the scheme helps firms bridge the gap until conditions stabilise