The Union Cabinet, chaired by Prime Minister, Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE) to provide 100 per cent credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC). The scheme aims to extend collateral-free credit facilities of up to Rs 20,000 crore to eligible exporters, including those in the MSME sector.
The Department of Financial Services (DFS) will implement the scheme through NCGTC, with a Management Committee headed by the Secretary, DFS, overseeing its progress and execution. The initiative will enable Member Lending Institutions (MLIs) to extend additional credit support to exporters, addressing liquidity challenges and promoting sustainable export growth.
The CGSE is expected to enhance the global competitiveness of Indian exporters while supporting diversification into new and emerging markets. By ensuring easier access to collateral-free credit, the scheme will strengthen exporters’ liquidity, sustain business operations, and contribute to India’s journey towards achieving the USD 1 trillion export target. This step also reinforces the government’s vision of an Aatmanirbhar Bharat.
Exports remain a key pillar of India’s economy, contributing nearly 21 per cent of GDP in FY 2024–25 and significantly supporting foreign exchange reserves. Export-oriented industries employ more than 45 million people, with MSMEs contributing around 45 per cent of total exports.
The Cabinet’s decision reflects the government’s continued focus on enabling financial inclusion and competitiveness in the export sector. By offering timely credit support and encouraging market diversification, the Credit Guarantee Scheme for Exporters is set to strengthen India’s position as a dynamic and globally competitive trading economy.
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