New Delhi, Nov 12 (PTI) In a bid to promote exports, Union Cabinet on Wednesday approved introduction Credit Guarantee Scheme for Exporters (CGSE) for providing 100 per cent credit guarantee coverage by National Credit Guarantee Trustee Company Ltd (NCGTC) to Member Lending Institutions (MLIs) for extending additional credit facilities up to Rs 20,000 crore to eligible exporters, including MSMEs.

The scheme shall be implemented by Department of Financial Services (DFS) through NCGTC to provide additional credit support by MLIs to the eligible exporters, including MSMEs, Information and Broadcasting Minister Ashwini Vaishnaw said while briefing Cabinet meeting decision headed by Prime Minister Narendra Modi.

A management committee formed under the chairmanship of secretary, DFS, will oversee the progress and implementation of the scheme, he said.

The scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets, he said.

By enabling collateral-free credit access under CGSE, it will be strengthen liquidity, ensure smooth business operations, reinforce India's progress towards achieving the USD 1-trillion export target, he said, adding that this will further reinforce India's journey towards Aatmanirbhar Bharat.

Exports are a critical pillar of the Indian economy, accounting for nearly 21 per cent of GDP in 2024-25 and contributing significantly to foreign exchange reserves.

Export-oriented industries directly and indirectly employ over 45 million people with MSMEs contributing nearly 45 per cent of total exports.

Sustained export growth has been instrumental in supporting India's current account balance and macroeconomic stability.

It is important to extend enhanced financial assistance and adequate time to exporters for diversifying their markets and enhance global competitiveness of Indian exporters.

Accordingly, proactive government intervention to provide additional liquidity support will ensure business growth and also enable expansion of markets. PTI DP TRB

Credit Guarantee Scheme for Exporters offers 100% guarantee for Rs 20,000 crore collateral-free credit to eligible exporters, including MSMEs. The Credit Guarantee Scheme for Exporters (CGSE) provides 100 per cent credit guarantee coverage to Member Lending Institutions for extending additional, collateral-free credit up to Rs 20,000 crore to eligible exporters including MSMEs, implemented via the Department of Financial Services' credit guarantee vehicle and overseen by a management committee chaired by the finance department secretary to strengthen exporter liquidity and support market diversification.