On 12-11-2025, the Union Cabinet approved the Credit Guarantee Scheme for Exporters for providing 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited to Member Lending Institutions for extending additional credit facilities upto Rs.20,000 crore to eligible exporters, including MSMEs.
Importance of Exports for India’s economy:
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Exports is the critical pillar of the country accounting for nearly 21% of GDP in FY 2024-2025.
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It contributes to foreign exchange reserves.
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It also generates employment.
Hence, it is important to extend enhanced financial assistance and adequate time to exporters for diversifying their markets and enhance global competitiveness of Indian exporters.
Impact:
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The scheme is expected to enhance the global competitiveness of exports and support diversification into new and emerging markets.
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Collateral-free-credit will strengthen liquidity, ensure smooth business operations, reinforce India’s progress towards achieving the USD 1 trillion export target.
Implementation strategy and targets:
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The Scheme is implemented by the Department of Financial Services through National Credit Guarantee Trustee Company Limited to provide additional credit support by MLIs to eligible exporters including MSMEs.
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Management Committee will be formed under the Chairmanship of Secretary, DFSS to oversee the progress and implementation of the Scheme.