The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Credit Guarantee Scheme for Exporters (CGSE). The CGSE aims to provide 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for additional credit facilities up to Rs. 20,000 crore to eligible exporters, including MSMEs.
The Department of Financial Services (DFS) will implement the scheme through NCGTC. A Management Committee, chaired by the Secretary of DFS, will oversee its progress.
The CGSE aims to enhance the global competitiveness of Indian exporters, support market diversification, strengthen liquidity, and reinforce India’s progress toward achieving the USD 1 trillion export target. Exports accounted for nearly 21% of GDP in FY 2024-25. Export-oriented industries employ over 45 million people, with MSMEs contributing nearly 45% of total exports.
Key Entities Referenced
Credit Guarantee Scheme for Exporters (CGSE): A scheme providing 100% credit guarantee coverage to Member Lending Institutions (MLIs) for extending additional credit facilities to eligible exporters, including MSMEs.
National Credit Guarantee Trustee Company Limited (NCGTC): The entity providing the credit guarantee coverage under the CGSE to Member Lending Institutions.
Department of Financial Services (DFS): The department responsible for implementing the Credit Guarantee Scheme for Exporters (CGSE).
Ministry of Finance
Cabinet approves Credit Guarantee Scheme
for Exporters (CGSE)
Up to Rs. 20,000 crore collateral-free credit support
envisaged
100% credit guarantee through NCGTC
Benefits to both MSME & non-MSME exporters
Supports liquidity, market diversification, employment, and
enhance global competitiveness of Indian exporters
Posted On: 12 NOV 2025 8:25PM by PIB Delhi
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi today approved introduction
of Credit Guarantee Scheme for Exporters (CGSE) for providing 100% credit guarantee coverage by
National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions
(MLIs) for extending additional credit facilities upto Rs.20,000 crore to eligible exporters, including
MSMEs.
Implementation strategy and targets:
The scheme shall be implemented by Department of Financial Services (DFS) through National
Credit Guarantee Trustee Company Limited (NCGTC) to provide additional credit support by MLIs
to the eligible exporters including MSMEs. A management Committee formed under the
chairmanship of Secretary, DFS will oversee the progress and implementation of the scheme.
Major Impact:
The Scheme is expected to enhance the global competitiveness of Indian exporters and support
diversification into new and emerging markets. By enabling collateral-free credit access under CGSE,
it will be strengthen liquidity, ensure smooth business operations, reinforce India’s progress towards
achieving the USD 1 trillion export target. This will further reinforce India’s journey towards
Aatmanirbhar Bharat.
Background:Exports are a critical pillar of the Indian economy, accounting for nearly 21% of GDP in FY 2024-25
and contributing significantly to foreign exchange reserves. Export-oriented industries directly and
indirectly employ over 45 million people and MSMEs contributing nearly 45% of total exports.
Sustained export growth has been instrumental in supporting India’s current account balance and
macroeconomic stability.
It is important to extend enhanced financial assistance and adequate time to exporters for diversifying
their markets and enhance global competitiveness of Indian exporters. Accordingly, proactive
Government intervention to provide additional liquidity support will ensure business growth and also
enable expansion of markets.
*****
MJPS/BM
(Release ID: 2189390) Visitor Counter : 235
Read this release in: Urdu , Marathi , ही , Gujarati , Tamil , Telugu