New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE) to strengthen credit access and enhance the global competitiveness of Indian exporters, particularly micro, small and medium enterprises (MSMEs).
Under the new scheme, the National Credit Guarantee Trustee Company Limited (NCGTC) will provide 100 per cent credit guarantee coverage to Member Lending Institutions (MLIs) for extending additional credit facilities of up to Rs 20,000 crore to eligible exporters. The initiative aims to facilitate collateral-free lending, improve liquidity and ensure continuity in export operations.
The Department of Financial Services (DFS) will implement the scheme through NCGTC. A management committee, chaired by the Secretary, DFS, will monitor and oversee its progress and execution.
According to the government, the CGSE will play a crucial role in empowering exporters to diversify into new and emerging global markets. By easing access to credit, it is expected to bolster India’s export growth trajectory and contribute significantly to achieving the USD 1 trillion export target.
Officials noted that the scheme will not only help exporters meet working capital needs but also reinforce India’s long-term vision of Aatmanirbhar Bharat by making domestic enterprises more resilient and globally competitive.