In a bid to support the exporters, the Finance Ministry has announced to infuse equity into the Export Credit Guarantee Corporation (ECGC) over a period of five years to boost export insurance cover by Rs 88,000 crore.
ECGC promotes exports by providing credit insurance services. Its products support around 30 per cent of India’s merchandise exports.
Addressing the media on Monday, Finance Minister Nirmala Sitharaman also announced a Rs 33,000 crore boost for project exports through the National Export Insurance Account (NEIA).
NEIA Trust promotes Medium and Long Term (MLT) project exports by extending risk covers, and provides covers to buyer’s credit, given by EXIM Bank, to less creditworthy borrowers, supporting project exporters.
The government has also proposed to provide additional corpus to NEIA over a period of five years to allow it to underwrite additional Rs 33,000 crore of project exports.
Till March 31, 2021, NEIA Trust has supported 211 projects of Rs 52,860 crore in 52 countries by 63 different Indian project exporters.