Union Cabinet Approves ₹20,000 Crore Credit Guarantee Scheme for Exporters to Boost Liquidity and Competitiveness

Union Cabinet Approves ₹20,000 Crore Credit Guarantee Scheme for Exporters to Boost Liquidity and Competitiveness

NEW DELHI: Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE).

The scheme aims to provide 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending collateral-free credit of up to ₹20,000 crore to eligible exporters, including those in the MSME sector.

ALSO READ:- Small Loans, Big Change: How PM Svanidhi Powering India’s Street Economy

The scheme will be implemented by the Department of Financial Services (DFS) through NCGTC. A management committee, chaired by the Secretary, DFS, will monitor implementation and ensure timely progress.

The CGSE is expected to enhance liquidity for exporters, enabling them to diversify into new and emerging global markets and boost employment opportunities.

By making it easier to access credit without the need for collateral, the initiative will help strengthen business operations and reinforce India’s progress toward achieving the government’s USD 1 trillion export target.

According to the government, the move will further the vision of Aatmanirbhar Bharat, improving India’s resilience in global trade and enhancing the competitiveness of Indian exporters.

Exports play a vital role in India’s economy, contributing around 21% to GDP in FY 2024–25 and employing over 45 million people directly and indirectly. MSMEs account for nearly 45% of India’s total exports, making the sector a crucial driver of growth.

The introduction of CGSE underscores the government’s proactive approach to ensuring financial inclusion, market diversification, and sustained export growth—key elements in maintaining macroeconomic stability and strengthening India’s global trade footprint.