Government provides funds to ECGC, NEIA to boost exports

Representative image

The government today approved capital infusion of Rs 2,000 crore in Export Credit Guarantee Corporation (ECGC) and Rs 1,040 cr to National Export Insurance Account Trust (NEIA) to give a fillip to the country's exports. The decision was taken in the meeting of cabinet committee on economic affairs (CCEA), headed by Prime Minister Narendra Modi here.

Briefing media, Finance Minister Piyush Goyal said, during the current year Rs 1,450 crore and another additional capital of Rs 500 crore will be given to the ECGC next year.

"CCEA approves capital infusion of Rs 2,000 crore in ECGC covers exports to around 200 countries in the world. More than 85 percent of customers benefitted by ECGC's covers are MSMEs," Goyal said.

This will provide support to the government policies to give a thrust to exports, Goyal said.

Further to promote project exports from the country, the government has approved additional grant to NEIA.

While Rs 440 crore was given to the trust last year, another Rs 300 crore will be provided this year and the same amount next year also.

A total of Rs 1,040 crore additional grant in the form of capital will be given to NEIA to support project exports from the country, the minister said.

India's exports grew by 9.78 percent to USD 302.84 billion in 2017-18.