India clears introduction of Credit Guarantee Scheme for Exporters

The Indian cabinet yesterday approved introduction of the Credit Guarantee Scheme for Exporters (CGSE) for providing cent per cent credit guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC)  to member lending institutions for extending additional credit facilities up to ₹200 billion to eligible exporters, including micro, small and medium enterprises (MSMEs).

The scheme shall be implemented by the Department of Financial Services (DFS). A management committee formed under the chairmanship of DFS secretary will oversee the progress and implementation of the scheme.

India’s cabinet has approved introduction of the Credit Guarantee Scheme for Exporters for providing cent per cent credit guarantee coverage by the National Credit Guarantee Trustee Co Ltd to member lending institutions for extending additional credit facilities up to ₹200 billion to exporters.
The aim is to enhance competitiveness of exporters and support diversification into new and emerging markets.

The scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets, an official release from the cabinet said.

By enabling collateral-free credit access under CGSE, it will strengthen liquidity, ensure smooth business operations and reinforce India’s progress towards achieving the $1-trillion export target.

It is important to extend enhanced financial assistance and adequate time to exporters for diversifying their markets and enhance global competitiveness of Indian exporters, the release added.

Fibre2Fashion News Desk (DS)