Cabinet Approves Credit Guarantee Scheme for Exporters to Boost India’s Export Growth:

Cabinet Approves Credit Guarantee Scheme for Exporters to Boost India’s Export Growth The Ministry of Finance recently shared a press release on November 12, 2025 regarding the Cabinet approving the Credit Guarantee scheme for Exporters (CGSE). The government, led by Prime Minister Narendra Modi, has approved a new plan called the Credit Guarantee Scheme for Exporters (CGSE). This scheme for Exporters (CGSE) provides 100% credit guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional credit facilities upto Rs 20,000 crore to eligible exporters, including MSMEs.

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The scheme will be run by the Department of Financial Services (DFS) through the National Credit Guarantee Trustee Company (NCGTC). Under this scheme, banks and other lenders will give extra loan support to eligible exporters, including small and medium businesses (MSMEs). A committee led by the Secretary of DFS will regularly monitor and manage how the scheme is being carried out. Major Impact of Credit Guarantee Scheme The scheme is expected to make Indian exporters more competitive worldwide and help them expand into new markets. It will enhance cash flow, support businesses running smoothly, and support India’s goal of reaching USD 1 trillion in exports. It will also increase India’s move toward becoming Aatmanirbhar Bharat.

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Exports play an important role in India’s economy, making up to 21% of the GDP and providing jobs to over 45 million people. MSMEs contribute nearly 45% of GDP in Financial Year 2024-25, and steady export growth helps keep India’s economy and foreign exchange stable.