On Tuesday, India’s federal cabinet approved a credit guarantee plan amounting to ₹181 billion (approximately $1.9 billion) to assist businesses and airlines affected by the ongoing conflict in Iran. The government will provide sovereign guarantees to lenders offering additional loans to eligible borrowers, aiming to help maintain operations, protect jobs, and sustain supply chains. This emergency credit line is similar to the collateral-free automatic loans provided to micro, small, and medium enterprises during the Covid-19 pandemic. The conflict between the US and Israel with Iran has significantly impacted the global economy, particularly affecting India, which is the world’s third-largest oil consumer and relies on the Middle East for about 90% of its gas shipments. Officials have warned that the situation could be as disruptive as the Covid-19 pandemic. Despite the government's growth forecast of 6.8%-7.2% for the fiscal year ending March 2027, economists are beginning to lower their projections, with Goldman Sachs estimating 5.9% growth for 2026 and Oxford Economics predicting 6.2%.