ECLGS scheme a lifeline for Kerala MSMEs, says Rajeev Chandrasekhar

Kerala BJP chief Rajeev Chandrasekhar highlighted the role of the Centre's ECLGS scheme in supporting the state's MSMEs and startups. He shared a testimonial from a Thiruvananthapuram-based startup that received critical relief during economic uncertainty.

Keralam BJP chief Rajeev Chandrasekhar on Saturday highlighted the significant role played by the Centre's Emergency Credit Line Guarantee Scheme (ECLGS) in supporting the state's MSMEs and startups during periods of global economic uncertainty, including the recent disruptions arising from the West Asia crisis. According to a press release from the Keralam BJP, Chandrasekhar highlighted the impact of the scheme.

A Startup's Testimonial

"I was happy to hear from Shyam of Alibi Global, a cyber forensics startup from Thiruvananthapuram. He shared how ECLGS support through SBI provided critical relief at a time when uncertainty in the Middle East had affected business conditions. He specifically asked me to convey his heartfelt gratitude to Prime Minister Narendra Modi ji for ensuring that such timely support reached entrepreneurs when they needed it most," said Rajeev Chandrasekhar.

Scheme's Impact and Rationale

As per the release, Keralam has been among the major beneficiaries of the scheme, with approximately 5.5 lakh MSME loan guarantees supported and over Rs 8,405 crore in guaranteed credit extended to businesses across the state. The scheme has enabled lakhs of enterprises to manage working capital pressures, sustain operations, protect jobs, and continue investing in growth despite external economic challenges.

Rajeev Chandrasekhar noted that Keralam's economy remains deeply connected to the Gulf and the wider West Asia through remittances, trade, tourism, and business activity, making the state particularly sensitive to developments in the region.

"When the Middle East faces instability, Keralam often feels the impact quickly. ECLGS is a practical example of how the Modi government responds with timely, targeted support to ensure that entrepreneurs and small businesses are not left vulnerable to global shocks beyond their control," he said.

He added that the scheme reflects the Modi government's broader commitment to ensuring that MSMEs have access to credit and liquidity during periods of uncertainty, while giving banks the confidence to continue lending when businesses need support the most.

"When government stands behind entrepreneurs, banks gain confidence to lend, businesses gain confidence to invest, and jobs are protected. That is how resilient economies are built. Supporting our MSMEs is not just about providing credit; it is about safeguarding livelihoods, enabling growth, and creating confidence in the future," Rajeev Chandrasekhar said.

A Call to Entrepreneurs

He also urged eligible MSMEs and startups in Keralam to actively explore and utilise government initiatives designed to support expansion, innovation, and job creation.

"The message from Keralam's entrepreneurs is clear: timely access to credit matters. These initiatives help businesses survive periods of uncertainty, recover faster, and create new opportunities. More eligible MSMEs and startups should come forward and take advantage of the support mechanisms made available by the Modi government," he added.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)