New Delhi, June 30 -- The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 launched by the government last month to cushion businesses from the economic impact of the West Asia war, has seen strong early traction, with 3.42 lakh guarantees issued covering over Rs.1.31 trillion in additional credit, according to two people aware of the development.

The scheme, introduced as a targeted liquidity support measure amid supply chain disruptions, elevated freight costs, volatile fuel prices and working capital pressures triggered by geopolitical tensions in West Asia, has channelled 83% of the guaranteed credit to micro, small and medium enterprises (MSMEs), the people said on the condition of anonymity.

"Our expectation is for the programme...