Govt Directs ECGC To Maintain Moratorium On Insurance Rates For Exporters

New Delhi, Feb 8 (KNN) In response to the Red Sea crisis, the government has instructed the Export Credit Guarantee Corporation (ECGC) to uphold a moratorium on insurance rates for Indian exporters.

ECGC, a state-owned entity, serves as an export promotion organisation dedicated to enhancing the competitiveness of Indian exports by offering credit insurance coverage.

Minister of State for Commerce and Industry, Anupriya Patel, affirmed that ECGC remains committed to providing insurance coverage to exporters.

She clarified that the corporation has not denied coverage for export shipments passing through the Red Sea, with credit risk cover being extended based on thorough risk assessments and evaluations of overseas buyers' creditworthiness and payment terms.

Patel stated during her response to the Lok Sabha, "The government has instructed the Export Credit Guarantee Corporation Ltd. to maintain a moratorium on insurance rates for Indian exporters."

Addressing concerns about rising freight costs within the industry, Patel acknowledged reported increases but did not provide further details.

Additionally, Patel also highlighted the government's awareness of the prevailing geo-political situation, noting consultations among various partners involved in the India-Middle East-Europe Economic Corridor (IMEC) initiative.

(KNN Bureau)