New Delhi: The Union cabinet, chaired by Prime Minister Narendra Modi, has approved the introduction of the credit guarantee scheme for exporters (CGSE) to provide 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Ltd (NCGTC).
Under the scheme, member lending institutions (MLIs) will extend additional credit facilities of up to ₹20,000 crore to eligible exporters, including micro, small and medium enterprises (MSMEs).
The Department of Financial Services (DFS) will implement the scheme through NCGTC. A management committee headed by the DFS secretary will monitor and oversee its implementation and progress.
According to the government, the scheme aims to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. By facilitating collateral-free credit, it seeks to strengthen liquidity for exporters, ensure smoother business operations, and help India progress toward the $1-trillion export target.
Exports contribute nearly 21% of India’s GDP and provide employment to more than 45 million people, with MSMEs accounting for about 45% of total exports. The government noted that sustained export growth has been key to maintaining macroeconomic stability and supporting the country’s current account balance.
Officials said the CGSE will offer timely financial assistance to exporters, helping them diversify markets and expand operations, thereby reinforcing India’s position in global trade.