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ECGC, a premier Export Credit Agency (ECA) of Government of India (GOI) established in 1957, provides credit insurance covers to exporters against non-payment risks by the overseas buyers due to commercial and political reasons. It also provides insurance covers to banks against risks in export credit lending to exporter borrowers. ECGC endeavours to support the Indian export industry with its experience, expertise and underlying commitment to progress and advance of India’s exports. ECGC promotes both Short Term (ST) exports (i.e. export realisation within one year) and Medium and Long Term (MLT) exports (i.e. export realisation extending over a period of more than one year).

The total exports supported by ECGC during the FY 2018-19 is around `6,60,000 crore. It is notable to mention that from the large number of exporters benefited by ECGC’s covers, more than 92% are MSME exporters.

The major coverage has been to the US, the UK, Germany and the UAE.  Major sectors covered were employment intensive sectors like engineering goods, textiles and allied products, chemical and pharma and agro products. Further, ECGC provides cover on 239 countries including high risk markets.

The systemic role of ECGC in the context of working capital lending to exporters has never been more pertinent than in the present stress scenario in the banking industry. Under ST Export Credit Insurance for Banks (ECIB), lending risk in extending pre and post shipment advances are covered. The total claims paid during the year to both banks and exporters are `1013 crore. The company’s contribution in the last decade by way of claim settlements of around `8300 crore has provided the much needed support to exporters and relief to banking system in ensuring adequate lending to exporters. Despite this huge stress, a profit of ` 314 crore before tax with a dividend of `72 crore to the Indian government has been concluded during FY 2017-18.

There are 19 products for exporters, 11 products for banks and 12 products for Medium and Long-term exporters/banks. Further, ECGC also provides customised covers to make it cost effective and administrative comfort for exporters and banks. It has also introduced the factoring facility to the MSME sector and cover in foreign currency to Special Economic Zone exporters.

The exemplary services rendered by ECGC have been validated by the best ECA award won in 2017 against competition from older and larger ECAs. Further, the company has been awarded by the Council for Fair Business Practices under the service sector for practicing, promoting and committing to fair business practices and also received the Best Performance recognition in the General Category from Ministry of Micro, Small & Medium Enterprises, Government of India for ‘Exemplary Work under Public Procurement Policy for Promotion of SC/ST Entrepreneurs’. It has been receiving the first or the second price in the “Indira Gandhi Award” (now renamed to “Rajbhasha Kirti Puraskar”) for 20 years now and the first prize in Rajbhasha Puraskar from the Ministry of Commerce for the last seven years. It also received awards at various centres in India through Town Official Language Implementation Committee (TOLIC).