Export Credit Guarantee Corporation Limited (ECGC), a premier Export Credit Agency (ECA) of Government of India (GOI) provides credit insurance covers to exporters against non-payment risks by overseas buyers. It also provides insurance covers to banks against risks in export credit lending to exporter borrowers. ECGC endeavours to support Indian export Industry with its experience, expertise and underlying commitment to progress and advance of India’s exports. ECGC has been playing a crucial role in insuring the export receivables and lending to exports. The exemplary service rendered has been validated by the best ECA award won in 2017 against competition from older and larger ECAs.
The corporation had 34,740 covers in force with a maximum liability of Rs. 96,101 crore as at the end of the 2017-18 fiscal. The total export supported during the FY 2017-18 comes to Rs. 6,41,449 crore which is around 33% of the total exports of the country. It is notable to observe that out of around 20000 exporters benefited by ECGC covers more than 85% are MSME exporters. ECGC promotes both Short Term (ST) exports (i.e. export realization within one year) and Medium and Long Term (MLT) exports (i.e. export realization extending over a period of more than one year). Covers issued to exporters and/or banks based on requirements to enable successful export.
Under its ST policy, i.e. cover to receivables of exporters, 11946 polices were in force which covered a value of Rs. 1, 77,349 crore. The major coverage has been to Europe and North America for high risk transactions like open delivery and longer credit periods. Major sectors covered were employment intensive sectors like engineering goods, cotton, textiles and ready-made garments. The total number of overseas buyers on record were 5, 12,000 and live buyers on whom overall limit set was 1, 27,847. Under Medium and Long Term (MLT) policies, more than 190 covers have been issued to 40 exporters covering a business of Rs. 7,416 crore.