PM Modi chairs CCS in Parliament; CCEA, Cabinet meetings today amid West Asia crisis, DA hike likely

Prime Minister Narendra Modi on Saturday chaired the Cabinet Committee on Security (CCS) meeting in Parliament to review India’s preparedness amid the escalating West Asia conflict, with key Cabinet Committee on Economic Affairs (CCEA) and full Cabinet meetings scheduled later in the day. The high-level discussions are expected to shape both India’s economic response and domestic relief measures, including a proposed Rs 2.5 lakh crore credit guarantee scheme for MSMEs and exporters, and a possible hike in dearness allowance (DA) for central government employees, even as the government reviews supply chains for fuel, fertilisers and electricity.

CCS reviews West Asia situation, national preparedness

The CCS meeting focused on assessing the rapidly evolving geopolitical situation in West Asia and its implications for India’s economy and security. This is among a series of high-level reviews chaired by PM Modi since March, underlining the urgency of the crisis.

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Officials briefed the Prime Minister on steps taken by ministries to safeguard national interests and ensure that disruptions in global supply chains do not affect India. Key sectors under review included energy, agriculture, fertilisers, shipping, logistics and aviation.

The government also assessed preparedness to manage any immediate shocks arising from the conflict, particularly those affecting essential commodities.

Focus on fuel, fertiliser, power availability

Ensuring uninterrupted access to critical resources for citizens remained central to the discussions. The government reviewed the availability of petroleum products, including LNG and LPG, along with the status of coal stocks at power plants.

Officials indicated that adequate coal reserves are in place to prevent electricity shortages. Fertiliser availability for the upcoming Kharif and Rabi seasons was also assessed, with existing buffer stocks expected to support farmers.

The government is also exploring alternative sourcing options to reduce dependence on regions affected by the conflict and to maintain long-term supply stability.

Rs 2.5 lakh crore credit guarantee scheme on agenda

A major economic proposal likely to come up in the CCEA and Cabinet meetings is a Rs 2.5 lakh crore credit guarantee scheme aimed at supporting MSMEs and exporters impacted by the West Asia crisis.

The scheme is expected to provide additional working capital to businesses and help prevent loan defaults by offering government-backed guarantees. Existing borrowers may also be eligible, with provisions allowing up to 20 per cent of additional working capital support.

Sources suggest the scheme could entail a fiscal burden of around Rs 17,000–18,000 crore for the Centre. The proposal is modelled on a similar credit guarantee programme introduced during the COVID-19 pandemic, which provided broad-based relief to multiple sectors.

DA hike for central government employees in focus

The government is also likely to take up a proposal to increase dearness allowance (DA) for central government employees and pensioners.

If approved, the move would benefit millions and offer relief amid rising inflation. The DA revision, which was expected earlier, is understood to have been delayed due to the ongoing global uncertainties linked to the West Asia situation.

Why West Asia conflict matters for India?

The current crisis escalated after a joint military strike by the United States and Israel on February 28 on Iranian territory reportedly killed Iran’s Supreme Leader Ayatollah Ali Khamenei, triggering a sharp response from Tehran.

The tensions have raised concerns over global energy markets and key trade routes, particularly those critical for oil shipments. For India, which relies heavily on energy imports, the conflict poses risks to inflation, trade and overall economic stability.

Govt weighs short-, medium-, long-term response

During the meetings, the government carried out a comprehensive review of response strategies across different timeframes.

Short-term measures focus on ensuring adequate availability of essential goods such as fuel, food and fertilisers. Medium-term planning includes diversifying import sources and strengthening logistics networks. Long-term strategies aim to reduce dependency on volatile regions and build domestic resilience.

PM Modi has also stressed the need for clear communication to prevent misinformation and ensure that citizens remain informed about the availability of essential supplies.