This document summarizes the Indian government's response to a parliamentary question regarding measures to support textile exporters. The response clarifies that there is no collaboration between the Ministry of Textiles and MODIFI India. However, the Ministry actively monitors textile export performance and implements measures to boost production and exports in consultation with Export Promotion Councils and Industry Associations.
The government utilizes Export Credit Agencies (ECAs) as policy instruments to support exports, as outlined in Para 2.55 of the Foreign Trade Policy, 2023. Export Credit Guarantee Corporation of India Ltd. (ECGC) provides credit insurance to protect exporters against payment failures stemming from buyer insolvency or default, as well as political risks. These covers allow exporters to diversify markets and safeguard existing ones. ECGC also supports Medium and Long-Term (MLT) exports, including project exports. Exim Bank provides lending for MLT exports and manages government lines of credit.
ECGC indemnifies exporters against losses due to buyer insolvency or default and political risks, such as war, import restrictions, or new laws enacted after shipment. The government also supports Export Promotion Councils and Trade Bodies through financial assistance for participation in trade fairs, exhibitions, and buyer-seller meets at both national and international levels.
Key Entities Referenced
Ministry of Textiles: The Indian government ministry responsible for the textiles sector.
MODIFI India: A company mentioned in the context of a potential collaboration with the Ministry of Textiles.
Small and Medium-sized Enterprises (SMEs): Businesses of a certain size that the collaboration aimed to benefit.
Foreign Trade Policy, 2023: A policy document related to export and import regulations.
Export Credit Agencies (ECAs): Policy instruments used by the Government to support exports through insurance, guarantee, and direct lending.
Export Credit Guarantee Corporation of India Ltd. (ECGC): An Export Credit Agency that provides credit insurance support to exports.
Exim Bank: An Export Credit Agency involved in lending for Medium and Long Term exports.
Textiles Export Promotion Councils: Organizations that work with the Ministry of Textiles to promote exports and boost production in the textile sector.
LOK SABHA
UNSTARRED QUESTION NO. 3808
TO BE ANSWERED ON 12.08.2025
MITIGATE RISKS FOR EXPORTERS
3808. SHRI SHASHANK MANI:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) the objectives and expected outcomes of the collaboration between the Ministry of Textiles and
MODIFI India;
(b) whether the said collaboration aims to benefit Small and Medium-sized Enterprises (SMEs) in the
textile and handloom sectors by improving their access to financial resources for international trade, if
so, the details thereof; and
(c) whether the Government has introduced measures to mitigate risks for exporters, including protection
against currency fluctuations, political instability in export markets and payment defaults and if so, the
details thereof?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) & (b): There is no such collaboration between Ministry of Textiles and MODIFI India.
(c): For promotion of exports and mitigation of risks for export, Ministry of Textiles is continuously
monitoring export performance of textiles and taking various measures to boost production and exports
in consultation with Textiles Export Promotion Councils and Industry Associations.
As per Para 2.55 of Foreign Trade Policy, 2023
(i) Export Credit Agencies (ECAs) are policy instruments for Government to support exports. ECAs
support exports by insurance, guarantee and also direct lending. Export Credit Agencies (ECAs) like
Export Credit Guarantee Corporation of India Ltd. (ECGC) provides credit insurance support to exports
and export credit lending. Covers issued by ECGC to exporters, protect against losses arising out of
payment failures due to insolvency or default of the buyers or due to political risks. Exporters can
diversify their markets in addition to protecting existing markets through such covers. ECGC also
supports Medium and Long term (MLT) exports including project exports. Exim Bank is the other ECA
in the business of lending for MLT exports and fronting the government’s line of credit.
(ii) ECGC indemnifies losses of exporters in export trade due to insolvency or default of the buyer.
Additionally, losses due to political risk like war, sudden import restriction, promulgation of law or
decree after the shipment has been affected are also covered. Some of the anti- dumping measures or
non-tariff barriers introduced after a shipment has been made will come under the purview of the
political risk. In such cases exporter’s interest are protected by ECGC.
Further, the Government also provides financial support to various Export Promotion Councils and
Trade Bodies for organising and participating in trade fairs, exhibitions, buyer-seller meets etc at
national and international levels to boost export.
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