ECGC, a premier Export Credit Agency (ECA) of Government of India (GOI) established in 1957, provides credit insurance covers to exporters against non-payment risks by the overseas buyers due to Commercial and Political reasons. It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers. ECGC endeavors to support Indian Export Industry with its experience, expertise and underlying commitment to progress and advance of India’s exports.

ECGC being one of the oldest ECAs in the world has been playing a crucial role in insuring the export receivables and lending to exports. The exemplary service rendered has been validated by the best ECA award won in 2017 against competition from older and larger ECAs.

The Corporation had 34,740 covers in force with a Maximum Liability of Rs.96,101 crore as at the end of the year on 31.03.2018. The total export supported during the FY 2017-18 comes to Rs.6,41,449 crore which is around 33% of the total exports of the country. It is notable to observe that out of around 20000 exporters benefited by ECGC’s covers, more than 85% are MSME exporters.

ECGC promotes both Short Term (ST) exports (i.e. export realization within one year) and Medium and Long Term (MLT) exports (i.e. export realization extending over a period of more than one year). Covers issued to exporters and/or banks based on requirements to enable successful export.

Under ST Policy, i.e. cover to receivables of exporters, 11946 polices were in force which covered a value of Rs.1,77,349 crore. The major coverage has been to Europe and North America for high risk transactions like open delivery and longer credit periods. Major sectors covered were employment intensive sectors like Engineering Goods, Cotton, Textiles and Readymade Garments. Total numbers of overseas buyers on record were 5,12,000 and live buyers on whom overall limit set was 1,27,847.

Under ST Export Credit Insurance for Banks (ECIB) lending risk in extending pre and post shipment advances are covered. The systemic role of ECGC in the context of Working Capital lending to exporters has never been more pertinent than in the present stress scenario in the banking industry. The total numbers of accounts covered were more than 22,600. In all 33 banks covering more than 4000 branches had been supported in lending to exporters. Here again export advances to employment intensive sectors were predominantly covered.

Under Medium and Long Term (MLT) more than 190 covers have been issued to 40 Exporters covering a business of Rs.7,416 crore. The Corporation also manager NEIA Trust of Govt. of India established in 2006 for the purpose of promoting MLT exports. Under NEIA 110 projects are supported in 38 countries through 177 covers. Exports of Rs.28,800 crore are supported through ECGC and Rs.14,700 crore through buyer credits.

The gross claims payout during the year exceeded that of gross premium income owing to the landmark settlement of claims to banks. The total claims paid during the year to both banks and exporters have been at the highest ever at Rs.1283 crore. In addition, provisions of Rs.6000 crore have been set aside for future payouts. The company’s contribution in the last decade by way of claim settlements of around Rs.7000 crore has provided the much needed support to exporters and relief to banking system in ensuring adequate lending to exporters. Despite this huge stress, a profit of Rs.130 crore before tax with a dividend of Rs.15 crore to Government of India (GoI) has been concluded. The investment asset level of the Company was over Rs.8800 crore as at the end of the year.

In order to recognize the contribution of Indian exporters, an exporters’ awards function was held in New Delhi on 6 th March, 2018 at the conclusion of Diamond Jubilee celebration wherein 30 exporters were honored. A chronicle of ECGC’s 60 years journey was also released on this occasion by Hon’ble Commerce &; Industry Minister.

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