The scheme would provide government-backed guarantees to banks for lending over a four-year period, mirroring measures introduced during the COVID-19 pandemic to sustain credit flow to stressed sectors.

The guarantees are expected to cover up to 90% of loans of up to 1 billion rupees ($10.75 million), the sources said.The fiscal cost of the plan is estimated at 170 billion to 180 billion rupees ($1.83 billion to $1.94 billion), according to the sources, who declined to be identified as discussions are ongoing.

Indian businesses, including textile and glass manufacturers, have been affected by supply disruptions linked to the war involving Iran, while rising energy prices have added to cost pressures.

As the world’s third-largest oil importer, India remains particularly exposed to volatility stemming from the closure of the Strait of Hormuz, a key route for global energy shipments.The government is also grappling with broader macroeconomic risks, including the prospect of higher inflation and slower growth as fuel costs rise and supply chains tighten.

The proposed guarantees are intended to encourage banks to continue lending despite heightened risks, ensuring businesses can meet obligations and sustain operations during the crisis.

India deployed a similar credit guarantee programme in 2020 to support sectors such as travel and tourism during the pandemic, helping firms resume operations and manage debt burdens.

Under a month-long order introduced last week, shops must close by 9:00 p.m. on weekdays and 10:00 p.m. on weekends, with a temporary extension to 11:00 p.m. during the Coptic Easter period. Authorities say the meaaures are necessary as rising global fuel prices drive up Egypt’s energy import bill.

Prime Minister Moustafa Madbouly said the country’s monthly energy costs more than doubled between January and March to $2.5 billion, reflecting Egypt’s dependence on imported fuel to meet domestic demand.

The restrictions have sharply altered life in Cairo, a city known for its late-night economy. Streets that typically remain active into the early hours now empty soon after closing time, with police patrols enforcing compliance.Small businesses have been among the hardest hit.

Shopworker Ali Haggag said his clothing store has lost more than half its revenue since the measures took effect, as evening foot traffic a major source of sales —has been curtailed.Economists warn the impact could be widespread in Egypt’s informal sector, which accounts for roughly two-thirds of employment.

Wael el-Nahas said reduced operating hours translate directly into lower incomes for millions of workers dependent on nightly commerce.The crisis has also affected major industries. Cinema operators report steep losses as late-night screenings typically the most profitable have been eliminated.

Film producer Gaby Khoury said box office revenues have fallen by more than 60 percent, prompting delays in releases and production schedules.Tourism, a key source of foreign currency, faces similar pressures.

While high-end hotels and Nile-side venues are exempt, popular attractions in central Cairo, including markets and bazaars, must close early, limiting visitor spending.

Industry officials say the reduction of evening activity risks diminishing the city’s appeal to tourists.The curbs come alongside broader austerity measures introduced in recent weeks, including fuel price increases, reduced public lighting, and expanded remote work policies.

Authorities say the steps are needed to manage fiscal pressures as energy prices surge following the escalation of conflict involving Iran.The economic strain has coincided with currency depreciation and rising inflation.

The Egyptian pound has weakened by around 15 percent since the conflict began, while inflation reached 13.6 percent in March.

Despite the disruption, some businesses are adapting by reduction staffing hours or employing informal workarounds to continue operations. Others expressed cautious optimism that consumers will adjust to the new schedule.

The Centre had repealed provisions of the article that gave special status to the erstwhile state of Jammu and Kashmir, and bifurcated it into union territories of Ladakh, and Jammu and Kashmir.

“Our conservative estimates put the losses to the Kashmir economy due to the situation after August 5 at ₹15,000 crore. We will be coming up with comprehensive data about the losses within a week,” Kashmir Chamber of Commerce and Industry (KCCI) president Sheikh Ashiq Hussain told PTI.

More than the losses to the economy, job loss due to clampdown on Internet services, protests and strikes was more worrying, he said.

The handicraft, tourism and e-commerce sectors were the worst hit by the situation post the Centre’s decision, Mr. Hussain said.

Though most restrictions have been lifted, the clampdown, which started on August 5, on internet services across all platforms and prepaid mobile phone still remains.

Postpaid cellphones and landlines are working in the Valley. SMS on postpaid phones are shut.

“The handicraft sector alone has witnessed over 50,000 people losing their jobs. The artisans were not getting any fresh orders in the absence of communication facilities. Even, the highly skilled artisans have been forced to look for odd jobs to meet their daily needs,” he said.

Mr. Hussain claimed that the hotel and restaurant industry has seen more than 30,000 people losing their jobs. The e-commerce sector, which includes courier services for purchases made online, has seen 10,000 people losing their jobs, he said.

“The Information Technology industry got some relief after the internet lease lines were restored for this sector but the overall situation of trade in Kashmir is dismal,” he said.

In Kashmir, markets open earlier than usual but close down by 1 pm as part of an undeclared protest programme against the stripping of the erstwhile state’s special status.

The tourism sector suffered the most as the J&K government issued an advisory to all non-locals, including tourists, to leave the Valley ahead of the August 5 announcement.

Though the advisory was revoked, tourists have by and large stayed away from Kashmir, even though there was early snowfall in Kashmir this November, which is a major attraction.

The credibility of India’s economic statistics has been questioned under the Modi government, and institutions are “under attack” with their autonomy getting eroded, Singh claimed.

The former prime minister said the economy had not yet recovered from ‘man-made blunders’ such as demonetisation.

Former Prime Minister Manmohan Singh on Sunday urged the government to “put aside vendetta politics” and consult with “all sane voices and thinking minds” to save the economy. He expressed concern at the latest economic growth data and blamed “all-round mismanagement” by the Narendra Modi government for the slowdown.

Data released on Friday showed that India’s economic growth rate had slipped to 5% in the April-June quarter, the lowest in over six years. This signals India is in the midst of a prolonged slowdown, Singh said, adding that the country has the potential to grow at a much faster rate. He said the slowdown was a “man-made crisis”.

The slowdown in the manufacturing sector, which grew just 0.6% during the quarter, “makes it very clear that our economy has not yet recovered from the man-made blunders of demonetisation and a hastily implemented” goods and services tax, the Congress leader said in a video statement.

Singh, who is also an economist often credited with historic economic reforms as finance minister in 1991, said that recent Budget announcements and rollbacks had “shaken the confidence of international investors”. The credibility of India’s economic statistics has been questioned under the Modi government, and institutions are “under attack” with their autonomy getting eroded, Singh claimed.

The former prime minister said the resilience of the Reserve Bank of India will be tested after its transfer of Rs. 1.76 lakh crore to the government.

Pointing out other problems with the economy, Singh said domestic demand was depressed, consumption growth was at an 18-month low, and government policies were leading to “massive jobless growth”. “More than 3.5 lakh jobs have been lost in the automobile sector alone,” he said. “There will similarly be large-scale job losses in the informal sector, hurting our most vulnerable workers.”

“There is a gaping hole in tax revenues,” Singh added. “Tax buoyancy remains elusive as businessmen, small and big, are hounded and tax terrorism continues unabated. Investor sentiments are in doldrums. These are not the foundations for economic recovery.”

Singh also spoke about rural distress. “Rural India is in terrible shape,” he said. “Farmers are not receiving adequate prices and rural incomes have declined. The low inflation rate that the Modi government likes to showcase comes at the cost of our farmers and their incomes, by inflicting misery on over 50% of India’s population.”

Singh concluded by saying: “India’s youth, farmers and farm workers, entrepreneurs and the marginalised sections deserve better. India cannot afford to continue down this path.”

Our economy has not recovered from the man made blunders of demonetisation & a hastily implemented GST… I urge the govt to put aside vendetta politics & reach out to all sane voices to steer our economy out of this crisis: Former PM Dr Manmohan Singh #DrSinghOnEconomicCrisis pic.twitter.com/83cBJWHay9

— Congress (@INCIndia) September 1, 2019

Economic slowdown

Since last week, the government has announced a slew of measures to check the economic slowdown. On August 23, Finance Minister Nirmala Sitharaman announced a set of measures to prop up the economy, less than two months after presenting the Union Budget. The Reserve Bank of India announced that it would give the Centre Rs 1.76 lakh crore of its dividend and surplus reserves. On August 30, Sitharaman again addressed a press conference to announce that 10 public sector banks would be merged into four entities.

In the last few months, core sectors such as automobiles, manufacturing and real estate, have witnessed a progressive slowdown in growth due to weakened consumer demand and dearth of investments. Chief Economic Adviser KV Subramanian on Friday attributed the slowdown to domestic and global factors. He added that the government was taking steps to improve the situation.

Article first published on Scroll.