ECGC's Strategic Shield: Navigating Tariff Challenges

The Commerce Ministry has announced that the Export Credit Guarantee Corporation (ECGC) is rolling out several initiatives aimed at minimizing the impact of recent tariff impositions on Indian exports. The US, in particular, has implemented a steep 50 percent tariff on Indian goods, which impacts labor-intensive sectors such as shrimp, leather, and textiles.

To aid exporters in overcoming these challenges, ECGC plans to provide robust support, including the review of new markets in Latin America, Africa, South-East, and East Asia. Enhanced credit cover will be available for banks up to a limit of Rs 50 crore without additional premiums, ensuring better protection against losses due to factors like resale and reshipment.

In the fiscal year 2024-25, ECGC reported a profit before tax of Rs 2,723.07 crore, a slight decline from the previous year. However, the company remains committed to supporting exporters with a 90 percent cover for bank loans targeting small exporters and has embraced digitization across its processes.

(With inputs from agencies.)