Boosting Export Credit: ECGC's Ambitious WT-ECIB Initiative

The ECGC's WT-ECIB scheme aims to bridge the export credit gap, benefiting 1,000 new and 8,000 existing small exporters through affordable export finance. The scheme offers up to Rs 80 crore for export credit working capital. India is enhancing services trade through FTAs, including ETCA negotiations with Sri Lanka.

The Export Credit Guarantee Corporation of India (ECGC) is addressing the export credit gap with its Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme. The initiative is set to benefit approximately 1,000 new small exporters in addition to the existing 8,000, by facilitating access to affordable export finance from banks.

The commerce ministry highlighted in its 2024 year-end review that the scope of the WT-ECIB scheme has been expanded to cover export credit working capital limits up to Rs 80 crore, effective from July 1. The move aims to improve credit offtake for MSME exporters, reducing the export credit gap.

Meanwhile, negotiations for the India-Sri Lanka Economic and Technology Cooperation Agreement (ETCA) are progressing, with most chapters concluded. India is leveraging free trade agreements to bolster services trade through market access certainty and an objective regulatory environment.

(With inputs from agencies.)