The Indian government is considering a Rs 5,000 crore credit support plan for airlines as disruptions from the Gulf crisis continue to impact travel, trade, and maritime operations.
New Delhi: India is preparing a targeted financial relief package for airlines as the ongoing tensions linked to the Iran conflict disrupt air travel and maritime routes across the Gulf region.
The proposal involves a Rs 5,000 crore credit scheme under the broader Rs 2.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), aimed at stabilising critical transport sectors.
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Centre eyes targeted airline relief
Under the proposed plan, airlines could access government-backed loans of up to Rs 1,000 crore per carrier. The scheme is expected to offer a repayment window of around five years, with possible extensions depending on the duration of the crisis. The move is designed to ease financial stress caused by suspended routes, fluctuating passenger demand, and operational uncertainty in Gulf-bound travel.
Air corridors cautiously reopening
Air connectivity between India and parts of the Gulf is gradually resuming. Countries such as the United Arab Emirates, Saudi Arabia, Oman, Kuwait, and Bahrain have reopened their airspace and restarted limited flight operations. Qatar has partially resumed services, enabling flights to several Indian cities. However, Iran remains largely inaccessible for passenger travel, with authorities advising Indian nationals to exit via land routes.
Seafarers face prolonged Gulf entrapment
The crisis has severely affected maritime operations, particularly around the Strait of Hormuz. Around 20,000 seafarers, including a significant number of Indians, remain stranded aboard vessels unable to pass through the region. Reports indicate shortages of essential supplies, communication challenges, and heightened security risks. At least 13 Indian-flagged ships are currently stuck on one side of the strait.
Immediate, short-term, and long-term impacts
In the immediate phase, India’s priority remains the safe evacuation of its citizens, including both air passengers and seafarers. In the short term, the proposed airline credit scheme is expected to help maintain essential connectivity with Gulf nations while stabilising aviation operations.
Looking ahead, the crisis may push India to diversify trade and energy routes, reduce reliance on conflict-prone corridors, and strengthen emergency evacuation systems for citizens overseas.
Published: 27 Apr 2026, 01:21 pm IST
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