Dhaka, May 6 -- The Indian government has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, a new credit support initiative aimed at helping airlines, micro, small, and medium enterprises (MSMEs), and other stressed sectors navigate liquidity challenges stemming from ongoing geopolitical tensions.

The Union Cabinet cleared the scheme with a total outlay of INR 18,100 crore. It is expected to unlock additional credit worth up to INR 2.55 lakh crore across eligible sectors. Of this, INR 5,000 crore has been specifically reserved for the aviation industry.

Under ECLGS 5.0, the Indian government will extend a 100% credit guarantee for MSMEs and 90% for non-MSMEs and airlines. The National Credit Guarantee Trustee Company Limi...