ECGC should provide liberal insurance cover to promote exports: FIEO

The commerce ministry should direct the Export Credit Guarantee Corporation (ECGC) to provide liberal insurance coverage to consignments with a view to promote overseas shipments, FIEO said Friday.

Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said the claims made by exporters should be settled on time and not rejected outrightly.

"We have asked the commerce ministry to direct ECGC on this issue. Exporters are facing huge problem at this front. Proper insurance cover is important to boost the country's exports. ECGC should work with exporters to address all the issues," he said.

Gupta said the liberal insurance cover for markets such as Africa and Latin America would help promote shipments in these regions.

In June, the government approved capital infusion of Rs 2,000 crore to ECGC to enhance insurance coverage to micro, small and medium enterprises exports.

Insurance coverage from the corporation will help improve competitive position of Indian exporters in international markets.

ECGC offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/or commercial risks.

India's exports grew 9.78 per cent to USD 302.84 billion in 2017-18.

Since 2011-12, exports have been hovering at around USD 300 billion. Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.