Government to put equity in ECGC to boost export insurance cover

To support exporters, the Finance Ministry has proposed to put equity in the ECGC for five years to increase the export insurance cover to Rs 88,000 crore. The ministry has announced to inject equity in Export Credit Guarantee Corporation (ECGC) over a period of five years, so that the export insurance cover can be increased to Rs.

Export Credit Guarantee Corporation (ECGC) promotes exports by providing credit insurance services. Its products support about 30 percent of India’s merchandise exports.
Finance Minister Nirmala Sitharaman said that an incentive of Rs 33,000 crore is proposed for project exports through National Export Insurance Account (NEIA).

After the second wave of Corona, the central government on Monday announced a relief package for various sectors for the second time to boost the country’s economy.

NEIA Trust promotes medium and long term (MLT) project exports by expanding risk cover.
The government has also proposed to provide additional funds to NEIA over a period of five years, so that it can underwrite the additional Rs 33,000 crore of project exports.

As of March 31, 2021, NEIA Trust has supported 211 projects worth Rs 52,860 crore in 52 countries by 63 different Indian project exporters.