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NEW DELHI : The PHD Chamber of Commerce and Industry warned that exports could suffer more because of the unavailability of export credit insurance provided by the state-run Export Credit Guarantee Corp. of India (ECGC).

Trade experts stated that ECGC witnessed a sharp depletion of funds due to uncertainty in various trade routes such as Russia, Sri Lanka and some African countries. While Sri Lanka is in the midst of a forex crisis which has crippled its ability to pay for shipments, the Russia-Ukraine war has sparked uncertainty among traders.

“There are a number of project exporters who have huge export orders/projects and have already executed agreements with foreign countries. However, they are not in a position to execute the orders and start the projects in view of the fact that EXIM bank is unable to make disbursements due to the non-availability of ECGC cover.

ECGC is reluctant to issue the coverage to EXIM bank because of the default committed by Sri Lanka and Zambia. This is adversely affecting the overall export performance of Indian exporters," PHDCCI president Saket Dalmia said in a letter to the finance minister.

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