India eyes ₹2-2.5L cr credit guarantee amid Iran gas threat
Indian officials say the ongoing conflict in Iran could disrupt India's economy much like COVID-19 did.
Since India gets about 90% of its gas from the Middle East, any trouble there hits hard, especially for small and midsize businesses.
To help out, the government is looking at a big credit guarantee scheme worth ₹2 to ₹2.5 lakh crore.
Foreign outflows hit India's rupee, growth
Even if things settle down soon, officials think it could take years for energy supplies to bounce back.
The government has already cut fuel taxes and set up a $6.2 billion fund to cushion the blow, but keeping growth steady (at 6.8% to 7.2%) is tough with oil prices soaring.
On top of that, foreign investors have pulled nearly $19 billion out of India recently, putting more pressure on the rupee and making it even harder for the government to meet its economic targets.