ECLGS 5.0 Launched for MSMEs Affected by West Asia Crisis: Rs. 2.55 Lakh Crore Outlay
Practice PYQs on this topic
500+ questions on Economy with explanations
📌 Summary:
-
Government launched Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0) with a corpus of Rs. 2.55 lakh crore to support MSMEs affected by the Iran-Israel/West Asia conflict and resulting supply chain disruptions
-
ECLGS was originally introduced during COVID-19 (2020) as part of Aatmanirbhar Bharat package; ECLGS 1.0–4.0 provided over Rs. 3.67 lakh crore in guaranteed credit to 1.3 crore+ borrowers
-
ECLGS 5.0 specifically targets exporters, logistics firms, and hospitality/tourism MSMEs facing revenue loss due to West Asia instability (Strait of Hormuz disruptions, higher freight costs)
-
National Credit Guarantee Trust Company (NCGTC) administers the scheme; 100% guarantee coverage for loans up to Rs. 2 crore
-
MSMEs employ ~11 crore people and contribute ~30% to GDP and ~45% to exports; protecting them is critical for employment and external sector stability
-
Scheme validity: 31 March 2027; eligible borrowers include those with existing standard loan accounts as on cut-off date
UPSC Classification
See PYQs related to “Economy”
Every classification tag above links to actual UPSC questions asked on that topic — with answer, explanation and elimination logic. Only in the app.