Cabinet clears Rs 20,000 crore additional funds for credit guarantee scheme to aid exporters

A management committee formed under the chairmanship of Secretary, DFS will oversee the progress and implementation of the scheme.

The Union Cabinet on November 12 approved Rs 20,000 crore more for Credit Guarantee Scheme for Exporters (CGSE), under which the National Credit Guarantee Trustee Company Ltd (NCGTC) will provide full credit guarantee coverage to banks in additional loans to eligible exporters, including MSMEs.

The scheme, which will be valid till March 31, 2026, 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.

#WATCH | Delhi | On Cabinet decision, Union Minister Ashwini Vaishnaw says, " Union Cabinet has approved Credit Guarantee Scheme for exporters for 100% credit guarantee coverage through National Credit Guarantee Trustee Company Limited..." pic.twitter.com/BNfzpPOyz1

— ANI (@ANI) November 12, 2025

The scheme is likely to provide major competitive boost to domestic exporters as the seek to diversify their shipments into new and emerging markets. The credit guarantee could help strengthen liquidity, ensure smooth business operations and help the country achieve its target of $1 trillion worth of exports.

In the past few weeks, the exporters have been asking the Central government to provide some relief after US President Donald Trump imposed 50 percent tariffs on Indian goods. The tariffs have adversely affected Indian exports, which has forced the traders to seek new destination for their goods.