The centre is likely to soon move towards Rs 2000 crore allocation under the Credit Guarantee Scheme for Exporters which was announced by the Union Government on November 12. In this context, news as per the sources reflect that the National Credit Guarantee Trustee Company (NCGTC) would need ₹2,000 crore to extend credit facilities of up to ₹20,000 crore to eligible exporters. Further, they said that the company has already some money.

Credit Guarantee Scheme for Exporters – Govt. Push for Exporters

In a significant bid to promote exporters the Union Cabinet approved the introduction of Credit Guarantee Scheme for Exporters (CGSE) to provide 100 per cent 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. The CGSE scheme is implemented by the Department of Financial Services (DFS) through NCGTC to provide additional credit support by MLIs to the eligible exporters which also includes MSMEs.

As per the decision by the Union government a management committee will be formed under the chairmanship of DFS secretary M Nagaraju to look after the progress and implementation of the scheme. The scheme is a significant step towards strengthening and enhancing the global competitiveness of Indian exporters and support diversification into new and emerging markets, and further boost India trade policy.

How will CGSE Help Amid US Tariff Policy?

CGSE India a ₹20,000 crore credit scheme is a befitting reply to the US Tariff as it will enable 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 the aim of Aatmanirbhar Bharat exports.

Exports being a critical pillar of the Indian economy, accounts for nearly 21 per cent of GDP in 2024-25 and contributed significantly to foreign exchange reserves. Export-oriented industries directly and indirectly employ over 45 million people, and MSMEs contribute nearly 45 per cent of total exports. The introduction of credit guarantee scheme will further boost the sector.

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