New Delhi: The Credit Guarantee Scheme for Exporters (CGSE), launched to strengthen India’s export sector amid global economic uncertainties, has received an encouraging response within its first month of implementation. Applications worth over ₹8,500 crore have been received so far, with sanctions amounting to ₹3,141 crore, reflecting strong confidence among exporters and lending institutions.
The scheme, operational since December 1, 2025, is being implemented by the Department of Financial Services (DFS) to support exporters—particularly micro, small and medium enterprises (MSMEs)—by improving access to credit, enhancing liquidity, and promoting market diversification.
According to official data, 1,788 applications have been received under the scheme, of which 716 have already been sanctioned. The initiative aims to provide additional collateral-free credit of up to ₹20,000 crore to direct and indirect exporter MSMEs through eligible Member Lending Institutions (MLIs).
Boost to Exports and Employment
Exports remain a critical pillar of the Indian economy, accounting for nearly 21% of GDP and supporting over 45 million jobs directly and indirectly. MSMEs alone contribute close to 45% of India’s total exports, making targeted financial support crucial for sustaining growth and competitiveness.
The CGSE provides a 100% government-backed guarantee for additional credit facilities, enabling exporters to access working capital equivalent to up to 20% of their existing export credit limits. This support is expected to help businesses maintain operations, expand capacity, explore new markets, and strengthen their global footprint.
Strengthening Liquidity and Market Resilience
The scheme has been designed to address liquidity challenges arising from global economic headwinds while ensuring continuity of export operations. By reducing lenders’ risk exposure through a sovereign guarantee, the initiative encourages banks and financial institutions to extend timely credit to exporters.
The Government has emphasised that the scheme will play a key role in enhancing India’s export competitiveness, promoting diversification of export markets, and safeguarding employment across export-oriented sectors.
Scheme Validity and Implementation
The Credit Guarantee Scheme for Exporters will remain operational until 31 March 2026 or until guarantees amounting to ₹20,000 crore are issued, whichever is earlier. The scheme is being implemented by the National Credit Guarantee Trustee Company Limited (NCGTC) under the Department of Financial Services.
Officials said the strong initials response reflects growing confidence among exporters and financial institutions in the scheme’s design and its potential to support India’s export-led growth trajectory.
