In order to enhance insurance coverage and boost exports, the Cabinet Committee on Economic Affairs (CCEA) has given green signal to capital infusion of Rs 2,000 crore in Export Credit Guarantee Corporation (ECGC). The capital infusion will be done over the three financial years 2017-20.
The break-up of the infusion would be Rs 50 crore in 2017-18, Rs 1,450 crore in 2018-19, and Rs 500 crore in 2019-20. The infusion would enhance insurance coverage to micro, small and medium enterprises (MSME) exports and strengthen India’s exports to emerging and challenging markets like Africa and Latin American countries. More than 85% of customers benefitted by ECGC’s covers are MSMEs.
The Commerce Ministry has said that with enhanced capital, ECGC’s underwriting capacity and risk to capital ratio would improve considerably and it would be in a better position to support Indian exporters tap new and unexplored markets. ECGC provides export credit insurance services to facilitate exports from the country and protect exporters from losses due to non-payment of dues by overseas buyers.
