The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Credit Guarantee Scheme for Exporters (CGSE), which will offer up to ₹20,000 crore of collateral-free credit support to Indian exporters, including MSMEs. The scheme provides 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC).
The CGSE has been introduced to make it easier for exporters to access working capital, explore new global markets, and improve India’s export competitiveness. It is expected to significantly support India’s goal of achieving USD 1 trillion in exports, while boosting employment and liquidity across export-based industries.
The Department of Financial Services (DFS) will implement the scheme through NCGTC, and Member Lending Institutions (MLIs) will offer additional credit to eligible exporters. A committee headed by the DFS Secretary will oversee the rollout and monitor the progress.
According to the government, the scheme will enhance liquidity and business continuity by enabling collateral-free lending for both MSME and non-MSME exporters. Easier access to finance is expected to help exporters diversify into emerging global markets and strengthen India’s position in international trade.
Exports contribute nearly 21% of India’s GDP and support over 45 million jobs. MSMEs alone account for about 45% of India’s total exports. The Cabinet stated that the CGSE will further support the growth of export-led sectors and align with India’s broader goal of building an Aatmanirbhar Bharat.
The government also noted that sustained export growth under this scheme will help improve foreign exchange reserves and support India’s long-term macroeconomic stability.