MSME Boost of 92,000 Crore, 5.27 Lakh Guarantees, 2,100 Raids and 34,000 LPG Exits as India Ramps War Response

The Indian government has detailed an expansive, multi-sector response to the ongoing West Asia conflict, combining energy stabilisation, MSME support, maritime safeguards and sustained diplomatic outreach, as the government sought to cushion domestic impact while navigating escalating global disruptions.

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At the most recent inter-ministerial briefing in New Delhi on Wednesday, officials said the government remains “committed to ensuring adequate support to MSMEs through coordinated policy measures,” highlighting that more than 5.27 lakh credit guarantees worth ₹92,000 crore were approved in February–March alone, alongside a sharp expansion in collateral-free lending limits and continued growth in credit flow to the sector.

The briefing underscored that energy supply remains a central priority amid disruptions linked to the Strait of Hormuz, with authorities maintaining that “100% supply is being made to Domestic LPG, Domestic PNG and CNG (Transport),” even as supply chains face pressure. 

Measures including enhanced refinery output, prioritised distribution to critical sectors and the promotion of alternate fuels have been deployed to maintain stability.

Officials said enforcement actions have intensified to curb hoarding and black marketing, with “more than 2,100 raids conducted” in a single day and hundreds of LPG cylinders seized, while penalties and suspensions have been imposed on errant distributors as part of a nationwide monitoring framework involving states and Union Territories.

On the demand side, structural shifts are being accelerated, with over 34,200 consumers surrendering LPG connections as part of a push toward piped natural gas (PNG), while new connections continue to expand rapidly. 

The government has also introduced policy reforms to fast-track pipeline infrastructure and incentivise cleaner fuel adoption to strengthen long-term energy resilience.

Fuel availability at the retail level remains stable, with no reported disruptions across outlets and excise duty reductions deployed to shield consumers from global price shocks. Export levies on diesel and aviation turbine fuel have also been raised to prioritise domestic availability, while additional kerosene allocations have been made to ease pressure on LPG demand.

Maritime operations continue without disruption despite heightened risks in the Gulf, with port activity “normal with no congestion reported” and Indian seafarers confirmed safe. 

A dedicated control room has handled thousands of distress communications and facilitated the repatriation of over 2,300 seafarers, reflecting intensified monitoring of shipping lanes linked to the conflict.

On the diplomatic front, India has sustained high-level engagement with key global and regional partners, including discussions with counterparts in Israel, Australia and Gulf nations, while also participating in multilateral forums focused on energy supply chain disruptions. 

Officials reiterated that attacks on merchant shipping are “completely unacceptable” and emphasised the need for “safe and unimpeded transit passage” in international waters.

The briefing also highlighted Prime Minister Narendra Modi’s recent call with U.S. President Donald Trump, during which both leaders “stressed the importance of keeping the Strait of Hormuz open and secure,” situating India’s domestic preparedness within a broader strategic and diplomatic framework.

With nearly 9.84 lakh passengers having travelled from the region to India since the conflict began and evacuation and advisory mechanisms continuing across multiple countries, the government said its approach remains focused on safeguarding citizens, stabilising essential supplies and maintaining economic continuity amid what it described as an evolving and complex geopolitical crisis.