The Union Minister of Commerce and Industry, Shri Piyush Goyal, recently announced several promising developments for the Export Credit Guarantee Corporation of India Limited (ECGC Ltd.) in a media briefing. Emphasizing on the need for transparency and simplification of procedures, the Minister announced that ECGC Ltd. will transition all its procedures to a completely digital platform. Further enhancing support to the Indian exporters, the Minister also announced an increase in export credit insurance coverage and the implementation of a new grievance redressal mechanism.
The Minister highlighted that a full digital transformation of all ECGC Ltd. procedures is due within the next few months, increasing convenience for exporters. A new grievance redressal mechanism involving live video-conference will also be established, allowing immediate interaction and faster resolution.
Last year, ECGC Ltd. increased the export credit insurance coverage for banks (ECIB) scheme to 90% for accounts with export credit working capital limits up to Rs. 20 crore. This enhanced coverage benefitted four banks: SBI, Central Bank of India (CBI), Bank of Maharashtra, and Saraswat Bank. This year, the scheme’s benefits are being expanded to cover accounts with limits up to Rs. 50 crore, potentially impacting around 3000 exporter-borrower accounts.
Furthermore, nine banks with a six-year claim to premium ratio (CPR) below 70% will be offered an enhanced cover of 90% for accounts with export credit working capital limits up to Rs. 20 crore. The initiative is expected to support around 3000 exporter-borrower accounts, thereby promoting the growth of Indian exports on a global scale.
In FY 2022-23, ECGC Ltd. supported over 16,000 exporters, covering business valued at Rs.6.68 lakh crore. With the recent policy enhancements, the Corporation expects the value of business covered to increase to more than Rs.10 lakh crore in the current fiscal year.
Conclusion
ECGC Ltd.’s move towards digitization and enhanced insurance coverage demonstrates its commitment to fostering growth and transparency in India’s export sector. By simplifying processes and providing more robust support, the Corporation is undoubtedly paving the way for a more vibrant and resilient export industry. The expected increase in business coverage by ECGC Ltd. and its commitment to the digital upgrade indicate a promising future for Indian exporters and the nation’s economy as a whole.
