New Delhi, Nov. 12 – Prime Minister Narendra Modi’s cabinet approved a new Credit Guarantee Scheme for Exporters, giving banks 100 % guarantee coverage on up to ₹20,000 crore for approved exporters, including MSMEs.
The Finance Ministry’s Department of Financial Services will run the program. The National Credit Guarantee Trustee Company (NCGTC) Ltd. will manage the guarantees, while a committee led by the DFS secretary will keep the project on track.
Why it matters
- The scheme lets exporters borrow without needing collateral, boosting cash flow and keeping production steady.
- It will help Indian firms move into new overseas markets and improve their global standing.
- Stronger exports support India’s goal of reaching $1 trillion in sales and underlie the Aatmanirbhar Bharat vision.
Economic impact
- Exports account for about 21 % of India’s GDP and provide jobs for more than 45 million people.
- Nearly half of all exports come from MSMEs, so the guarantee will directly aid a huge chunk of the economy.
- Recent tariff hikes in textiles, leather, gems and engineering goods have hurt foreign sales, so extra liquidity can keep orders flowing and protect jobs.
By giving exporters a safety net, the new scheme is designed to strengthen India’s export‑driven economy, help firms diversify into new markets, and keep the country’s macro‑economic balance healthy.
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