Daijiworld Media Network - New Delhi
New Delhi, Nov 12: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the Credit Guarantee Scheme for Exporters (CGSE), aimed at providing 100 per cent credit guarantee coverage to lending institutions for extending additional credit facilities of up to Rs 20,000 crore to eligible exporters, including micro, small, and medium enterprises (MSMEs).
The initiative, to be implemented by the Department of Financial Services (DFS) under the Finance Ministry through the National Credit Guarantee Trustee Company (NCGTC) Ltd, seeks to enhance liquidity and enable collateral-free credit for exporters. A management committee led by the Secretary, DFS, will monitor the scheme’s implementation and progress, an official statement said.
According to the government, the CGSE will help boost India’s global export competitiveness, support expansion into new and emerging markets, and strengthen exporters’ ability to operate smoothly amid global challenges. The move aligns with India’s broader goal of achieving the $1-trillion export target and advancing the vision of Aatmanirbhar Bharat (self-reliant India).
Exports currently make up around 21 per cent of India’s GDP for FY 2024–25, playing a vital role in building foreign exchange reserves and maintaining macroeconomic stability. Export-oriented industries collectively employ over 45 million people, while MSMEs account for nearly 45 per cent of total exports.
The government noted that sectors such as textiles, leather, gems and jewellery, engineering goods, and marine products have faced challenges from recent global tariff increases. The CGSE is designed to provide exporters with enhanced financial assistance and sufficient time to diversify markets, thereby helping sustain export orders, protect jobs, and drive growth in new geographies.
By improving access to credit and strengthening exporters’ financial resilience, the new scheme marks a key step toward sustained export growth and long-term economic self-reliance.