# India’s federal cabinet approved a credit guarantee plan with capital allocation of 181 billion rupees ($1.9 billion) The government will provide sovereign guarantees to lenders that extend additional loans to eligible borrowers.

*business · news · 2026-05-06 · Livemint*

## Key points

- India's cabinet approved a 181 billion rupee credit guarantee plan to support businesses and airlines.
- The government will provide sovereign guarantees to lenders extending new loans to eligible borrowers.
- This initiative targets cushioning the economic impact of the Iran war, specifically on supply chains and employment.
- Economists have started downgrading India's growth forecasts due to Middle East instability, despite official optimism.

**Countries:** India, Iran, United States, Israel

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