Cabinet clears ₹20000 crore Credit Guarantee Scheme for Exporters
Prime Minister Narendra Modi
Scheme to provide 100% collateral-free credit support through NCGTC; aims to boost MSME exports, liquidity, and competitiveness in global markets
New Delhi, November 13: The Union Cabinet has approved the Credit Guarantee Scheme for Exporters (CGSE), enabling collateral-free credit of up to ₹20,000 crore to eligible exporters, including MSMEs. The initiative aims to enhance liquidity, facilitate market diversification, and strengthen India’s global export competitiveness. The cabinet met under the chairmanship of Prime Minister Narendra Modi on Wednesday.
Under the scheme, the National Credit Guarantee Trustee Company Limited (NCGTC) will provide 100% credit guarantee coverage to Member Lending Institutions (MLIs) for extending additional credit facilities to exporters. The programme will be implemented by the Department of Financial Services (DFS), which will monitor its rollout through a management committee chaired by the Secretary, DFS.
Driving export-led growth
The government expects the scheme to act as a catalyst for India’s progress towards the $1 trillion export target, while supporting the larger vision of Aatmanirbhar Bharat. By easing access to credit, the scheme will ensure smoother business operations for exporters and encourage diversification into new and emerging markets.
Supporting India’s export ecosystem
Exports currently contribute nearly 21% of India’s GDP, with export-oriented industries employing over 45 million people. MSMEs account for about 45% of total exports, making them critical to sustaining India’s current account balance and foreign exchange reserves.
By offering enhanced financial assistance and longer repayment flexibility, CGSE is expected to help exporters mitigate risks, expand operations, and remain resilient amid global trade uncertainties.
