The Union Cabinet, led by Prime Minister Narendra Modi, has approved a new Credit Guarantee Scheme for Exporters (CGSE).
The scheme will provide 100% credit guarantee coverage to lending institutions that offer additional credit of up to Rs 20,000 crore to eligible exporters, including MSMEs.
This initiative aims to boost liquidity and support exporters in expanding their operations without worrying about collateral.
How the Scheme Will Work
The scheme will be implemented by the Finance Ministry’s Department of Financial Services (DFS) through the National Credit Guarantee Trustee Company (NCGTC) Ltd.
A management committee, chaired by the DFS Secretary, will oversee the progress and implementation of the scheme.
Member lending institutions (MLIs) will provide extra credit to exporters, which will be fully guaranteed by the government.
Benefits for Exporters and the Economy
The CGSE will help exporters, especially MSMEs, to:
Access collateral-free credit for business growth
Maintain smooth operations and strengthen liquidity
Expand into new and emerging international markets
The scheme also supports India’s goal of reaching a $1 trillion export target and reinforces the journey toward Aatmanirbhar Bharat (self-reliant India).
Exports are a key pillar of India’s economy, contributing around 21% of GDP in FY 2024-25.
Export-oriented industries employ over 45 million people, and MSMEs contribute nearly 45% of total exports.
Supporting Export Growth Amid Global Challenges
With global tariff escalations affecting sectors like textiles, leather, gems & jewellery, engineering goods, and marine products, the government’s intervention will:
Sustain export orders
Protect jobs in export-oriented industries
Enable diversification into new global markets
By providing financial support and liquidity, the CGSE ensures that Indian exporters remain competitive worldwide while driving economic growth.
