Boosting Exports: Credit Guarantee Scheme Announced for Indian Exporters

The Union Cabinet has introduced the Credit Guarantee Scheme for Exporters, offering 100% credit coverage to eligible MSMEs to boost exports. Managed by the Department of Financial Services, the scheme aims to enhance global competitiveness and support India's $1 trillion export target.

The Union Cabinet has unveiled the Credit Guarantee Scheme for Exporters (CGSE), aiming to bolster India's export sector by providing comprehensive credit coverage to MSMEs. The initiative, approved on Wednesday, promises to extend additional financial support of up to Rs 20,000 crore.

Implemented by the Department of Financial Services through the National Credit Guarantee Trustee Company Ltd, this scheme is designed to enhance the global competitiveness of Indian exporters, including MSMEs. Information and Broadcasting Minister Ashwini Vaishnaw emphasized the scheme's role in promoting new markets and achieving India's export targets.

The scheme also aims to streamline the credit process, enabling collateral-free access and reinforcing liquidity. With exports representing a vital pillar of the Indian economy, constituting 21% of GDP by 2024-25, this development is expected to facilitate business growth, support macroeconomic stability, and embody the vision of Aatmanirbhar Bharat.

(With inputs from agencies.)