🚢 ECGC Plans Stronger Safety Net for Exporters
New Delhi – To help Indian exporters tackle rising global trade challenges, particularly the steep 50% tariff imposed by the US on Indian goods, the Export Credit Guarantee Corporation of India (ECGC) has proposed a series of supportive measures, the Commerce Ministry announced on Tuesday.
The tariff hike has severely impacted labour-intensive sectors such as shrimp, leather, and textiles, prompting urgent interventions to protect India’s export competitiveness.
💡 Proposed Measures by ECGC
The ECGC outlined several steps to support exporters facing tariff disruptions:
Enhanced credit cover for banks up to an export credit limit of ₹50 crore without extra premium.
Protection for exporters against losses from non-delivery of goods, including cases of resale, discounting, reshipment, or voyage diversion.
Market diversification review, focusing on Latin America, Africa, South-East Asia, and East Asia to reduce dependence on the US market.
📊 ECGC Performance
In 2024–25, ECGC reported a profit before tax of ₹2,723.07 crore, slightly lower than ₹2,858.95 crore in the previous fiscal. Despite global trade volatility, ECGC has managed to remain profitable while expanding support to exporters.
🏦 Recent Support Initiatives
To further safeguard exporters, ECGC has already rolled out key reforms:
90% enhanced cover for banks on export credit loans to small exporters at a cost-effective premium.
Full digitalisation of its processes to speed up approvals and reduce paperwork.
🌍 Boosting Export Resilience
Officials noted that these initiatives will help exporters diversify into new global markets, reduce risks from tariff shocks, and ensure that small businesses continue to access affordable credit.
