ECGC plans measures to help exporters deal with high tariffs

New Delhi, Sep 9 (PTI) The Commerce Ministry on Tuesday said Export Credit Guarantee Corporation (ECGC) has proposed several measures, including covering losses from non-delivery of goods and providing enhanced cover for banks up to an export credit limit of Rs 50 crore, to help exporters cope with tariff disruptions.

The US has imposed a steep 50 per cent tariff on Indian goods, affecting labour-intensive sectors, such as shrimp, leather and textiles.

"In order to support exporters to tide over the tariff disruptions, the company envisages several measures including a review of countries in Latin America, Africa, South-East and East-Asia to facilitate market diversification, extending cover to the exporters' loss arising due to non-delivery of goods exported, on account of resale, discount, reshipment, diversion of voyage etc., enhanced cover for banks up to Export Credit Limit of Rs 50 crore with no additional premium," it said.

In 2024-25, Export Credit Guarantee Corporation of India Limited (ECGC) registered a profit before tax of Rs 2,723.07 crore against Rs 2,858.95 crore in the preceding fiscal.

In order to support exporters, the company has recently taken a slew of measures, such as enhanced cover of 90 per cent for banks for their export credit loans to the small exporters in a cost-effective manner, and digitalisation of all its processes, it said.

In 2024-25, the value of exports supported by the ECGC stood at Rs 8.55 lakh crore. PTI RR BAL BAL