The recently approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 by the Indian government is expected to provide crucial support to around 1.1 crore Micro, Small, and Medium Enterprises (MSMEs) in India. This initiative aims to help businesses manage disruptions caused by the ongoing conflict in West Asia. Under the scheme, eligible MSMEs can access additional credit of up to ₹2.3 lakh (approximately $2,800 USD) per account, with an overall target of ₹2.55 lakh crore (roughly $306 billion USD) in additional credit flow. The scheme also extends support to certain non-MSME sectors, including airlines, which can receive up to 100% of their peak working capital utilized during the fourth quarter of FY26, capped at ₹1,500 crore (approximately $180 million USD) per borrower. Previous versions of ECLGS were instrumental in stabilizing the MSME sector during the Covid-19 pandemic, preventing at least 13.5 lakh MSME accounts from slipping into non-performing asset (NPA) status. The report from State Bank of India (SBI) emphasizes that this timely intervention will enhance liquidity, protect jobs, sustain supply chains, and bolster the resilience of the Indian economy.