Exporters to get ₹2,000 crore allocation for Credit Guarantee Scheme from Centre? Here's what we know

The Centre is likely to soon allocate ₹2,000 crore towards the Credit Guarantee Scheme for Exporters announced by the Union Cabinet on 12 November, PTI reported citing sources.

As per the sources, the National Credit Guarantee Trustee Company (NCGTC) would require ₹2,000 crore to extend credit facilities of up to ₹20,000 crore to eligible exporters. They added that some money is already with the company.

The funds could be provided through supplementary demands for grants after the Parliament approves grants, as per the sources.

Govt push for exports: CGSE approved for 100% coverage

• In a bid to promote exports, the Union Cabinet on 12 November approved the introduction of the 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 scheme is being implemented by the Department of Financial Services (DFS) through NCGTC to provide additional credit support by MLIs to the eligible exporters, including MSMEs.
• A management committee will be formed under the chairmanship of the Secretary, DFS, to oversee the progress and implementation of the scheme.
• The scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets.

How will CGSE help amid Trump tariffs?

By enabling 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 Aatmanirbhar Bharat.

Exports are a critical pillar of the Indian economy, accounting for nearly 21 per cent of GDP in 2024-25 and contributing 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.

Sustained export growth has been instrumental in supporting India's current account balance and macroeconomic stability.

It is important to extend enhanced financial assistance and adequate time to exporters for diversifying their markets and enhancing the global competitiveness of Indian exporters.

Accordingly, proactive government intervention to provide additional liquidity support will ensure business growth and also enable the expansion of markets.

(With inputs from PTI)