The Indian Union Cabinet, led by Prime Minister Narendra Modi, has approved the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) with a total outlay of ₹18,100 crore (approximately $2.2 billion USD) to support Micro, Small, and Medium Enterprises (MSMEs) and airlines facing increased operational costs amid the ongoing West Asia crisis. First launched in May 2020 during the COVID-19 pandemic, this latest iteration is expected to facilitate an additional credit flow of ₹2.55 trillion (around $30.7 billion USD), including a ₹5,000 crore (approximately $600 million USD) allocation specifically for the aviation sector. The scheme provides a government-backed guarantee to banks, allowing them to lend more to affected businesses. If borrowers default, the government will cover 100% of losses for MSMEs and 90% for larger firms and airlines. Businesses can secure additional loans of up to 20% of their highest working capital used in the March quarter of FY26, capped at ₹100 crore (about $12 million USD), while airlines can borrow up to ₹1,500 crore (around $180 million USD) based on their requirements. The loans will have a five-year term for most businesses and a seven-year term for airlines, with a moratorium period of one and two years, respectively. This initiative comes in response to warnings from the Federation of Indian Airlines (FIA) about the severe financial strain on the aviation sector, exacerbated by rising aviation turbine fuel (ATF) prices due to geopolitical tensions. The scheme aims to sustain operations, protect jobs, and maintain supply chains across various sectors.