Export Credit Guarantee Corporation of India Ltd (ECGC), a public sector credit risk insurance provider that guarantees export credits against payment risks by importers, may be giving its largest-ever credit support of above Rs 700 crore to domestic firms and banks this financial year.
“Last two years were one of the worst periods for the country’s export sector. Last fiscal, we had given a credit support of above Rs 640 crore. However, during this financial year it is expected to be between Rs 700-750 crore, the largest in our 53-year-old history. In the first six months, we have paid a claim of Rs 300 crore,” said Geetha Muralidhar, ECGC executive director, on the sidelines of a CII meeting in Kolkata on Friday.
Except China, India and Brazil, exports arena in all other countries are struggling to come out of the global financial crisis, she added.
Though the country’s gems and jewellery sector is faring with above 45 per cent growth, it seems to be one of the bothering spots for ECGC.
“This, along with handicrafts, are the fields which are facing the heat. Last year, we paid compensation of about Rs 200 crore in gems and jewellery sector. This year, the claims have already touched Rs 150 crore,” she said.
ECGC, managed by a board of directors comprising representatives of the government, Reserve Bank of India, banking, insurance and exporting community, is the fifth largest credit insurer in the world in terms of coverage of national exports.
The firm currently has 15 products for exporters and multiple products for banks under its portfolio.
Regarding the proposed Foreign Manufacturers Legal Accountability Bill by the United States government, she said, “Developed economies are in a panic situation and are trying to implement easy non-tariff barriers. This may affect our industry also, if such regulations happen all of a sudden, we would protect the exporters.”