The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Credit Guarantee Scheme for Exporters (CGSE). The scheme aims to provide 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs). It will extend up to Rs. 20,000 crore in additional credit facilities to eligible exporters, including MSMEs, supporting both MSME and non-MSME exporters. The scheme will be implemented by the Department of Financial Services (DFS) through NCGTC. A management committee chaired by the Secretary, DFS, will oversee the implementation. Exports contribute approximately 21% to India's GDP and 45% of total exports are contributed by MSMEs. The scheme is expected to enhance the global competitiveness of Indian exporters. The release was posted by PIB Delhi on 12 NOV 2025 at 8:23PM.
Key Entities Referenced
Credit Guarantee Scheme for Exporters (CGSE): Scheme providing 100% credit guarantee coverage to eligible exporters, including MSMEs.
National Credit Guarantee Trustee Company Limited (NCGTC): Provides credit guarantee coverage under CGSE to Member Lending Institutions (MLIs).
Department of Financial Services (DFS): Implements the Credit Guarantee Scheme for Exporters (CGSE).
Cabinet
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 8:23PM 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.
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