Govt Revives Emergency Credit Guarantee Scheme Amid Global Trade Pressures

Daman | Union Territory — In a major relief measure for Indian industries facing global economic headwinds, the Centre has revived the Emergency Credit Guarantee Liquidity Scheme to provide collateral-free loans to businesses impacted by US tariff policies and the ongoing Middle East conflict.

Announcing the decision during a visit to Daman, Union Finance Minister Nirmala Sitharaman said the Union Cabinet approved the revival of the pandemic-era scheme to ensure industries do not suffer liquidity stress due to geopolitical disruptions.

“The scheme that supported industries during the Covid period has been reintroduced so that businesses do not face negative impacts from current global challenges. Industries will not have to provide any security, as the government will stand guarantee for these loans,” she said.

The minister emphasised that the decision comes at a time when global trade tensions and conflicts are affecting supply chains and export demand, particularly for small and medium enterprises. According to her, the move will help maintain production, protect jobs and sustain economic momentum.

During the event, Sitharaman also highlighted the broader development push under Prime Minister Narendra Modi, stating that infrastructure expansion and digital initiatives have accelerated economic growth. She pointed to efforts such as modern libraries in villages and digital commerce platforms that have helped connect rural industries to global markets.

Addressing the impact of US tariffs and Middle East instability, the Finance Minister noted that smaller industries are especially vulnerable to sudden shifts in trade conditions. The revived scheme aims to ensure easy access to working capital and restore confidence among manufacturers and exporters.

She expressed optimism that the Union Territory’s industries could triple exports worth ₹40,000 crore with increased investment and policy support. The government, she added, remains committed to strengthening industry resilience and accelerating progress toward the vision of a developed India.