The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE) aimed at providing 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC). The scheme will enable Member Lending Institutions (MLIs) to extend additional credit facilities of up to ₹20,000 crore to eligible exporters, including Micro, Small and Medium Enterprises (MSMEs).
Implementation Framework
The scheme will be implemented by the Department of Financial Services (DFS) through NCGTC. A Management Committee, chaired by the Secretary, DFS, will monitor and oversee its implementation and progress. The initiative seeks to strengthen the credit ecosystem for exporters, facilitating timely and collateral-free credit support.
Expected Impact
The CGSE is expected to significantly enhance the global competitiveness of Indian exporters, particularly MSMEs, while supporting diversification into new and emerging markets. By providing collateral-free credit access, the scheme aims to bolster liquidity, ensure smooth business operations, and reinforce India’s progress toward achieving its ambitious USD 1 trillion export target.
This initiative will also contribute to India’s vision of Aatmanirbhar Bharat, by empowering export-oriented industries to expand their reach and strengthen their position in global value chains.
Background
Exports play a pivotal role in India’s economic growth, contributing nearly 21% of GDP in FY 2024–25 and providing employment to over 45 million people. MSMEs account for about 45% of India’s total exports, underscoring their central role in the export landscape.
Recognizing the need for sustained financial support, the government’s proactive intervention through the CGSE will enable exporters to diversify markets, enhance competitiveness, and maintain steady growth momentum. The scheme is also expected to contribute to macroeconomic stability by supporting India’s current account balance and strengthening foreign exchange reserves.
By enhancing access to finance and easing liquidity constraints, the Credit Guarantee Scheme for Exporters marks another significant step toward positioning India as a leading global export powerhouse.