India Implements Multi-Faceted Strategy to Mitigate Economic Impact of Iran Conflict
Fertilisers To Flights: What India Is Doing To Cushion Iran Conflict Impact
News 18
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In response to the ongoing conflict in West Asia, India has introduced a comprehensive strategy to shield its economy. Key measures include a ₹41,533 crore fertiliser subsidy increase, a 25% reduction in airport charges, and a ₹2.5 lakh crore credit guarantee scheme for businesses, aimed at stabilizing prices and ensuring supply across various sectors.
- 01The Indian government has approved a ₹41,533 crore subsidy for fertilisers to protect farmers from rising costs.
- 02A 25% cut in airport charges for domestic flights aims to stabilize airfares amid rising fuel prices.
- 03A proposed ₹2.5 lakh crore credit guarantee scheme will support businesses facing financial pressures.
- 04Export levies on diesel and aviation fuel have been implemented to prioritize domestic supply.
- 05Customs duties on select petrochemical inputs have been waived to support manufacturing.
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As the conflict in West Asia continues to affect global markets, India has swiftly enacted a multi-faceted strategy to mitigate potential economic fallout. The government has approved a ₹41,533 crore subsidy for the Kharif 2026 season under the Nutrient Based Subsidy (NBS) scheme, marking an 11.60% increase from the previous year, to shield farmers from rising fertiliser costs. In the aviation sector, a 25% reduction in landing and parking charges at major airports aims to alleviate pressure on airlines and stabilize domestic airfares. Additionally, a ₹2.5 lakh crore credit guarantee scheme is being prepared to support businesses facing cost pressures, expanding upon the Emergency Credit Line Guarantee Scheme (ECLGS) used during the COVID-19 pandemic. To ensure fuel availability, the government has imposed export levies on diesel and aviation turbine fuel (ATF), prioritizing domestic consumption. Furthermore, customs duties on select petrochemical inputs have been waived to protect manufacturing from input shortages. These measures collectively aim to provide stability for consumers, farmers, businesses, and exporters amidst ongoing global disruptions.
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These measures are designed to stabilize prices for consumers and ensure that farmers and businesses can operate without severe financial strain. The fertiliser subsidy will help keep input costs manageable for farmers, while the credit guarantee scheme will facilitate easier access to loans for businesses.
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