Cabinet Approves Rs 20,000-Cr Credit Guarantee Scheme To Support Exporters And MSMEs

New Delhi, Nov 13 (KNN) The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE) to provide enhanced credit access to exporters, including Micro, Small and Medium Enterprises (MSMEs).

Under the scheme, the National Credit Guarantee Trustee Company Limited (NCGTC) will extend 100 per cent credit guarantee coverage to Member Lending Institutions (MLIs) for additional credit facilities of up to Rs 20,000 crore to eligible exporters.

The initiative will be implemented by the Department of Financial Services (DFS) through the NCGTC. A management committee, chaired by the Secretary, DFS, M. Nagaraju, will monitor the scheme’s progress and implementation.

According to the government, the CGSE aims to strengthen liquidity support and enable collateral-free credit for exporters. The initiative will help maintain smooth business operations and advance India’s USD 1 trillion export target.

The scheme is also expected to improve global competitiveness, assist exporters in diversifying into new markets, and contribute to India’s broader Aatmanirbhar Bharat vision.

Exports account for nearly 21 per cent of India’s GDP in FY 2024–25, providing employment to over 45 million people, with MSMEs contributing around 45 per cent of total exports. 

Sustained export growth has been a key factor in maintaining macroeconomic stability and supporting the current account balance, the government said.

The Cabinet said the scheme will provide sustained credit flow to exporters, enhance confidence among lending institutions, and contribute to long-term export growth.

(KNN Bureau)