The COVID-19 pandemic inflicted severe liquidity and demand shocks on India’s Micro, Small and Medium Enterprises (MSME) sector, threatening widespread enterprise closures and job losses. In response, the Government of India deployed fiscal stimuli and credit-guarantee mechanisms, particularly the Emergency Credit Line Guarantee Scheme (ECLGS), to stabilise enterprises and accelerate recovery. This article evaluates the role of post-pandemic fiscal support and government credit guarantees in India, with emphasis on credit access, enterprise survival, employment preservation and financial stability. The available evidence suggests that ECLGS substantially expanded emergency liquidity for borrowers, although the benefits were uneven because many informal and very small firms remained outside formal credit networks. Sustainable MSME recovery therefore requires credit support to be combined with timely-payment enforcement, market access, digital capability and stronger monitoring of outcomes.