Union Cabinet approves credit guarantee scheme for exporters

New Delhi [India], November 12 (ANI): The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the launch of the Credit Guarantee Scheme for Exporters (CGSE), a release said.
This will enable National Credit Guarantee Trustee Company Limited (NCGTC ) to provide 100 per cent credit guarantee coverage to Member Lending Institutions (MLIs) to provide additional credit facilities of up to Rs 20,000 crore to eligible exporters , including MSMEs, it added.
The scheme will be implemented by the Department of Financial Services (DFS ) through the National Credit Guarantee Trustee Company Limited (NCGTC ) to provide additional credit support to eligible exporters, including MSMEs, through MLIs. A Management Committee, chaired by the DFS Secretary, will oversee the progress and implementation of the scheme, it added.
The scheme is expected to enhance the global competitiveness of Indian exporters and support their diversification into new and emerging markets. By facilitating collateral-free loans under the CGSE, the scheme will strengthen liquidity, ensure smooth business operations, and consolidate India's progress towards achieving the US$1 trillion export target. This will further strengthen the country's journey towards Atmanirbhar Bharat, it stated.

The release noted that exports are a vital pillar of the Indian economy , accounting for approximately 21 percent of GDP in fiscal year 2024-25. Exports contribute significantly to foreign exchange reserves. Export-oriented industries directly and indirectly employ over 45 million people, and MSMEs contribute approximately 45 percent of total exports. Sustained export growth has been instrumental in maintaining India's current account balance and macroeconomic stability, it stated.
Providing exporters with better financial support and sufficient time is crucial to diversifying their markets and enhancing the global competitiveness of Indian exporters. Accordingly , a proactive government plan to provide additional liquidity support will ensure business growth and expand markets, the release stated. (ANI)