State-run export credit agency ECGC Ltd has upgraded the country risk ratings of 24 nations for short-term exports, a move expected to significantly reduce insurance premiums for Indian exporters and support market diversification amid rising global trade uncertainty and higher US tariffs, officials said.
The upgrade, following a comprehensive review, aims to protect exporters from the adverse impact of tariff hikes in traditional markets—particularly the US—and encourage expansion into alternative geographies. Short-term exports typically involve the realisation of export proceeds within one year.
ECGC Ltd, formerly the Export Credit Guarantee Corporation of India, supported exports worth ₹8.55 lakh crore in 2024–25, registering over 16.3% annualised growth. The company reported a net profit of ₹2,077 crore in FY25, marginally lower than ₹2,159 crore in the previous fiscal.
A commerce ministry year-ender confirmed the development, stating: “Amid global economic uncertainty and the likely trade disruption caused by the US tariff hike, ECGC has undertaken a strategic review of country ratings to liberalise underwriting and encourage market diversification.”
India’s broader trade diversification strategy has helped the country post around 2.62% annualised growth in merchandise exports to $292 billion during April–November 2025, despite exporters facing tariffs of up to 50% in the US market.
According to officials, the revised ratings will particularly benefit micro and small enterprises (MSEs) by lowering insurance costs and enabling them to explore new export destinations across Latin America, the Middle East, Africa, East Asia and other emerging markets. This is expected to reduce over-dependence on markets impacted by tariffs, protectionist policies and restrictive access conditions.
The ECGC review assessed countries affected by recent geopolitical developments as well as those with strong potential for mutually beneficial trade ties with India, including strategic partners and high-growth markets.
Countries whose ratings were upgraded include Bhutan, Cameroon, Cape Verde, Congo, El Salvador, Eritrea, Ghana, Honduras, Kenya, Liberia, Malaysia, Nicaragua, Nigeria, Panama, Peru, South Africa, Sri Lanka, Sweden, Trinidad and Tobago, Turkey, Uganda, Uruguay, Venezuela and Zambia.
Under the revised framework:
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Malaysia, Sweden and Uruguay were upgraded from A2 to A1 (minimal risk).
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Bhutan, Panama, Peru, South Africa and Trinidad and Tobago moved from B1 to A2.
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Turkey saw a two-notch upgrade from B2 to A2.
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Cape Verde, Honduras, Nicaragua, Nigeria and Uganda improved from B2 to B1.
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Kenya and Liberia advanced from C1 to B2.
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El Salvador, Ghana, Sri Lanka and Venezuela rose from C2 to C1.
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Zambia and Eritrea recorded a two-notch jump from D to C1, while Cameroon moved from D to C2.
“In the current volatile global trade environment, Indian exporters must develop alternative markets,” an official said, adding that premium rates under various ECGC policies would reduce proportionately following the upgrades, as insurance pricing is closely linked to country risk ratings.
Lower risk classifications translate into cheaper export credit insurance, offering exporters greater confidence to enter new markets and strengthen India’s export resilience.
