Boosting Exports: India's Rs 2,000 Crore Credit Guarantee

The Union Cabinet has approved a Rs 2,000 crore allocation for the Credit Guarantee Scheme for Exporters to provide a 100% credit guarantee. NCGTC will manage the scheme, offering collateral-free credit to exporters, aiming to enhance their global competitiveness and support India's economic growth and export targets.

The Indian government is set to inject Rs 2,000 crore into the Credit Guarantee Scheme for Exporters, as sanctioned by the Union Cabinet on Wednesday. This initiative is geared towards bolstering the liquidity of Indian exporters by offering comprehensive credit support.

Implemented by the National Credit Guarantee Trustee Company Limited (NCGTC), the plan involves extending credit facilities up to Rs 20,000 crore to eligible exporters, including MSMEs. The funding will likely come through supplementary demands post-Parliament approval.

A management committee, led by the Secretary of the Department of Financial Services, will ensure meticulous oversight of the scheme's progress. Consequently, this move is poised to enhance India's export sector, contributing to the country's USD 1 trillion export target and the broader Aatmanirbhar Bharat initiative.

(With inputs from agencies.)