Export credit insurance norms soon

The government is likely to announce in a few days details of insurance sops on export credit to banks and exporters as part of the first fiscal stimulus package, said S Prabhakaran, executive director, Export Credit Guarantee Corporation of India (ECGC).

“The government will compensate an additional 10 per cent for insurance to exporters and overseas buyers, as well credit guarantees operated for banks,” said Prabhakaran.

On December 7, the government had announced a slew of measures for companies to boost economic growth, which included a back-up guarantee to ECGC.

Guidelines for the scheme are likely to be announced anytime soon, he said. Prabhakaran also said these sops would be extended to micro, small and medium companies and non-MSMEs as well.

“If exporters get better compensation, their ability to survive in the business increases and sustainability becomes higher,” Prabhakaran said.

Exporters have been adversely impacted by the sharp volatility in the Indian currency.

Exports fell over 15 per cent in October.