Govt Outlines Measures for MSMEs, Energy and Shipping Amid West Asia Crisis

 The government has detailed a set of coordinated measures aimed at supporting businesses, maintaining energy availability, and safeguarding maritime operations as disruptions continue due to the West Asia crisis. 

MSME Support and Credit Expansion 

The MSME Ministry stated that it is actively engaging with industry stakeholders through continuous consultations and has recorded more than 20 lakh new MSME registrations since the crisis began. 

To strengthen credit access, Reserve Bank of India has enabled collateral-free loans of up to ₹20 lakh for MSMEs, effective April 1. Outstanding credit to the sector currently stands at ₹37.6 lakh crore, reflecting a 23.5% year-on-year increase. 

In addition, credit guarantee activity has accelerated, with over 5.7 lakh guarantees issued during February and March 2026, amounting to more than ₹92,000 crore.  

The ministry is also coordinating with the Department of Financial Services on the possibility of introducing a scheme similar to the Emergency Credit Line Guarantee Scheme (ECLGS). 

Energy Stability and Supply Measures 

On the energy front, the Ministry of Petroleum and Natural Gas indicated that domestic LPG supply remains stable, with online booking levels at 93%.  

Since the onset of the crisis, the country has supplied around 1,34,000 tonnes of commercial LPG, including auto LPG. 

Demand for auto LPG has increased, with daily sales rising from 177 tonnes to 283 tonnes. The ministry emphasised that adequate fuel supplies are available and advised consumers to use petrol, diesel and LPG as per requirement.  

It also reiterated that India continues to source crude oil from diversified global suppliers to ensure supply security. 

Diplomatic Engagement and Maritime Safety 

At the diplomatic level, discussions between the Prime Minister of India and the President of the United States focused on reaffirming their global strategic partnership and addressing the evolving situation in West Asia. A key priority highlighted was ensuring that the Strait of Hormuz remains open. 

India is also engaging with multiple countries to facilitate safe navigation for Indian-flagged vessels in the region. According to the Shipping Ministry, 15 Indian-owned or flagged vessels are currently operating in the Strait of Hormuz. 

Read More: India FY27 Growth Pegged at 6.5% with US Tariff Cuts Aiding Outlook: IMF! 

Conclusion 

Through a combination of financial support, energy management and diplomatic coordination, the government is working to mitigate the impact of the West Asia crisis while ensuring continuity across critical sectors of the economy.

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