India to infuse ₹2,000 crore to expand credit guarantee cover for exporters

The Union Finance Ministry is likely to allocate ₹2,000 crore to support an additional ₹20,000 crore Credit Guarantee Scheme for Exporters, according to sources aware of the development. The funding will be routed through supplementary demands for grants.A panel will be constituted under the chairmanship of the Department of Financial Services (DFS) Secretary Nagaraju to oversee and monitor the implementation of the expanded scheme. The move comes after the Cabinet cleared the proposal for providing additional cover under the credit guarantee scheme for exporters.On November 12, the Union Cabinet approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE) to provide 100% credit guarantee coverage by NCGTC to Member Lending Institutions (MLIs) for extending additional credit facilities up to ₹20,000 crore to eligible exporters, including MSMEs.
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The scheme is being implemented by the Department of Financial Services (DFS) through NCGTC to provide additional credit support by MLIs to the eligible exporters, including MSMEs. A management committee will be formed under the chairmanship of the Secretary, DFS, to oversee the progress and implementation of the scheme. The scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets.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 as well as the country’s journey towards Aatmanirbhar Bharat.Also Read: India seeks rise in services exports, movement of skilled workers to Russia

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