Federation of Indian Export Organisations (FIEO) has said that the commerce ministry must direct the Export Credit Guarantee Corporation (ECGC) to provide liberal insurance coverage to shipments in order to promote exports. FIEO President Ganesh Gupta has said that the claims made by exporters should be settled on time and not rejected outrightly.
Gupta has said that they have asked the commerce ministry to direct ECGC on this issue. He also said that exporters are facing huge problem at this front, therefore proper insurance cover is important to boost the country's exports. He noted that ECGC should work with exporters to address all the issues. Adding further, he said that liberal insurance cover for markets such as Africa and Latin America would help promote shipments in these regions.
In June, the Cabinet Committee on Economic Affairs approved capital infusion of Rs 2,000 crore in the ECGC to enhance insurance coverage to micro, small medium enterprises (MSME) exports and strengthen India’s exports to emerging and challenging markets like Africa, CIS (Commonwealth of Independent States) and Latin American countries. ECGC offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/or commercial risks. India’s exports during 2017-18 grew by 9.78 percent to $302.84 billion from $275.85 billion reported for 2016-17.