ECGC supported total exports at Rs 2,65,000 crores, 85% accounted for MSMEs
The Dollar Business Bureau
During the 59th Annual General Meeting of Export Credit Guarantee Corporation (ECGC) chaired by the Commerce Secretary Rita Teaotia, it was noted that despite ECGC reducing the premium rates of exporters (in order to bring down the transaction costs of the exporters) by an average 17% under policies, ECGC recorded only a marginal decline in premium of less than 4%.
ECGC has posted a profit before tax of Rs.407 crores, an increase of 5% over previous year.
ECGC’s support of total exports at Rs.2,65,000 crores was around 15% of total merchandise exports in 2016-17. A significant aspect of ECGC’s performance was accounted for by MSMEs that took up 85% of its support.
As on 31st March 2017, 12,029 covers were in force with a total maximum liability of Rs 86,215 crores. With a view to increasing Indian exports in new markets like Africa, covers provided by ECGC to exporters exporting to Africa recorded a growth of 15% over previous year. This was even when exports to Africa recorded a decline of 5% in 2016-17.
ECGC has over 4,00,000 overseas buyers on record of which more than 1,20,000 buyers are regular and active buyers for Indian exporters. The cumulative exposure on these active buyers made available by ECGC is more than Rs.1,25,000 crores for Indian exporters. ECGC has an active management of exposures on these buyers built over more than five decades.
The government owned credit agency also supports the diversification of exports to Focus Markets identified by the Ministry of Commerce by its ratings to enable coverage of exports at very competitive rates.
ECGC has been a pioneer in providing ECIB covers to banks which enable the exporters to get adequate and timely finance from Banks at pre-and post-shipment stages. The credit agency also manages the National Export Insurance Account Trust (NEIA) of the Government of India that provides credit insurance covers to medium and long-term exports, including project exports. The NEIA has supported 76 contracts with a project value of around Rs 35,000 crores, being executed by Indian exporters in 29 countries.
ECGC hosted the meeting of Heads of BRICS ECAs in New Delhi while India was the BRICS Chair.