+
Cabinet Clears Credit Guarantee Scheme for Exporters
ECONOMY & POLICY

Cabinet Clears Credit Guarantee Scheme for Exporters

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE), which will provide 100 per cent credit guarantee coverage via the National Credit Guarantee Trustee Company Limited (NCGTC). The scheme will allow Member Lending Institutions (MLIs) to extend additional credit of up to Rs 200 billion to eligible exporters, including MSMEs.

Implementation Strategy

The Department of Financial Services (DFS) will implement CGSE through NCGTC. A Management Committee chaired by the DFS Secretary will oversee execution and progress. The scheme is designed to boost access to collateral-free credit and strengthen liquidity for exporters.

Expected Impact

CGSE is expected to improve the global competitiveness of Indian exporters, particularly MSMEs, and support market diversification. By easing access to credit, the scheme reinforces India’s goal of achieving USD 1 trillion in exports and advances the country’s Aatmanirbhar Bharat mission.

Background

Exports account for nearly 21 per cent of India’s GDP in FY 2024–25 and play a critical role in maintaining foreign exchange reserves. Export-oriented industries employ more than 45 million people, with MSMEs contributing about 45 per cent of total exports. Sustained export growth is essential for India’s current account balance and overall macroeconomic stability.

The government noted that exporters need enhanced liquidity and adequate time to expand into new markets and improve competitiveness. The CGSE aims to provide this support by ensuring additional financial assistance, thereby promoting business stability, growth, and expansion across global markets.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE), which will provide 100 per cent credit guarantee coverage via the National Credit Guarantee Trustee Company Limited (NCGTC). The scheme will allow Member Lending Institutions (MLIs) to extend additional credit of up to Rs 200 billion to eligible exporters, including MSMEs. Implementation Strategy The Department of Financial Services (DFS) will implement CGSE through NCGTC. A Management Committee chaired by the DFS Secretary will oversee execution and progress. The scheme is designed to boost access to collateral-free credit and strengthen liquidity for exporters. Expected Impact CGSE is expected to improve the global competitiveness of Indian exporters, particularly MSMEs, and support market diversification. By easing access to credit, the scheme reinforces India’s goal of achieving USD 1 trillion in exports and advances the country’s Aatmanirbhar Bharat mission. Background Exports account for nearly 21 per cent of India’s GDP in FY 2024–25 and play a critical role in maintaining foreign exchange reserves. Export-oriented industries employ more than 45 million people, with MSMEs contributing about 45 per cent of total exports. Sustained export growth is essential for India’s current account balance and overall macroeconomic stability. The government noted that exporters need enhanced liquidity and adequate time to expand into new markets and improve competitiveness. The CGSE aims to provide this support by ensuring additional financial assistance, thereby promoting business stability, growth, and expansion across global markets.

Related Stories

Gold Stories

Next Story
Real Estate

The Energy-Smart Buildings

Passive design is an integral part of energy-efficient architecture. Sophisticated building systems also contribute to this end. But what role do materials play in enhancing a building’s energy-efficiency?“Material selection is one of the earliest opportunities to influence how a building performs,” says Tejbeer Singh, Principal Architect & Founder, Expressionist by Tejbeer Singh. “The objective is not simply to select materials that look appropriate but to understand how they behave within the climate and construction system.”To read the full article Click Here ..

Next Story
Infrastructure Transport

When the Lowest Bid Comes at a Cost

India's infrastructure sector is building at a scale few markets can match. New highways, expressways, metros, bridges and complex engineering projects are transforming the country's landscape. Yet, behind this rapid expansion is a growing concern within the contracting community: Can infrastructure be delivered sustainably when competition pushes prices below commercially viable levels?For Praveen Sethia, Founder & Director, Infra Advisors, who moderated the discussion, the question goes beyond the contractor's commercial interests. Contractors may be one of the two parties to a contract,..

Next Story
Real Estate

Ultra-Luxury Projects Reshape Gurugram’s Housing Market

Gurugram’s luxury housing market has expanded beyond its traditional prime locations, with corridors such as Dwarka Expressway and Golf Course Extension Road emerging as key centres for premium residential development. Larger homes, integrated developments and amenity-led communities are attracting demand from end-users and investors.A 2025 report by Sotheby’s International Realty in collaboration with CRE Matrix identified Gurugram as India’s fastest-growing ultra-luxury housing market. The city overtook Mumbai in total sales value for homes priced above Rs 10 crore, recording nearly Rs..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code