AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
On 27 June 2018, the Indian Cabinet Committee on Economic Affairs approved to infuse a capital of INR 2000 crore (~USD 290.74 million) in the Export Credit Guarantee Corporation (ECGC). This will be provided in 3 years, INR 50 crore (~USD 7.27 million) in 2017-18, INR 1450 crore (~USD 210.79 million) in 2018-19 and INR 500 crore (~USD 72.7 million) in 2019-20.
The ECGC is a government entity with the objective of promoting India's exports by providing insurance covers to Indian exporters on their export proceeds and by providing guarantees to financial institutions for them to extend credit facilities to exporters.
According to the official press release, more than 85% of the customers of the ECGC are Micro, Small and Medium Enterprises (MSMEs) and that the capital infusion will support the growth of exports of such MSMEs to markets such as Africa, Commonwealth of Independent States (CIS) and Latin America.
* INR to USD conversion as on 27 June 2018 - INR 68.79 / USD
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