Government will shield businesses from external shocks: FM Sitharaman
Credit guarantees encourage banks to give loans without hesitation, and the default rate has been low.Union finance minister Nirmala Sitharaman.(ANI Video Grab)New Delhi: The government will not let the volatile external situation to affect Indian businesses, finance minister Nirmala Sitharaman said on Thursday, highlighting the measures taken to ensure collateral-free credit for them.Speaking at a book fair and industrial exhibition in Daman, the minister said that a ministerial committee is reviewing cooking gas availability on a daily basis to ensure uninterrupted supplies.Sitharaman said that because of the US tariffs on Indian exports and the West Asia war, Indian businesses, particularly small businesses, have faced challenges. Sitharaman referred to the steps taken by the government including collateral-free Mudra loans to small businesses and the emergency credit line guarantee scheme which was brought in during the covid period, and its latest version cleared by the Union cabinet on 5 May.Under this, working capital is provided without collateral, on government guarantee. “The PM will not allow any negative impact on your business because of the external situation,” Sitharaman said.The ECLGS 5.0 cleared by cabinet this week offers additional credit support to eligible businesses in view of the West Asia situation.It seeks to faciitate additional credit flow of
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