Export Credit Guarantee Corporation of India

Posted On - 1 April, 2025 • By - Madhu Ganda

Preamble:

The Export Credit Guarantee Corporation of India (ECGC) is a government-owned agency that insures credit risks for Indian exporters and banks. ECGC’s mission is to promote exports and improve the competitiveness of India’s exports.

History:

ECGC was established in 1957 as the Export Risks Insurance Corporation (ERIC).
It was renamed the Export Credit and Guarantee Corporation Limited in 1964
It became the Export Credit Guarantee Corporation of India in 1983.

Headquarters:

ECGC is headquartered in Mumbai, Maharashtra.
The Chairman and Managing Director is the highest-ranking official at ECGC
Services. ECGC offers credit risk insurance and related services for exports.
ECGC also administers the National Export Insurance Account (NEIA).
ECGC has designed various export credit insurance schemes
Achievements. ECGC has a database of over five lakh overseas buyers.
ECGC has settled claims worth more than Rs.7,500 crore in the last decade
and has invested in Africa Trade Insurance (ATI) to facilitate Indian exports to Africa.

Other Initiatives:

ECGC implements the Capacity Building of First Time Exporters (CBFTE) scheme
and offers Whole Turnover Export Credit Insurance for Banks (WT-ECIB).

Functions of ECGC:

1. As said in the preamble the primary function of ECGC is to provide a range of credit risk insurance cover to exporters against loss in export of goods and services.                      

2.ECGC offers export credit insurance covers to banks and financial institutions to enable exporters to obtain better facilities.

3. The Indian companies investing in joint ventures abroad in the form of equity or loan get overseas investment insurance from ECGC.

Objectives of ECGC:

1. Providing guidance to exporters in export related matters.

2.Providing information on different countries.

3. Helps exporters to obtain export finance from banks.

4. Helping exporters for recovery of their dues from clients abroad.

5.Provides information of credit worthiness of foreign buyers. 

What is the need for export credit insurance:

1. The function of ECGC is of immense importance in view of inherent risks involved in export credits. They mainly consist of uncertainty of payments, insolvency of buyers, unstable business conditions abroad, uncertain economic, commercial and political conditions in foreign countries and outbreak of war or civil war between the countries. 

Vision of ECGC:

The vision of ECGC is to provide export credit insurance and trade related services.

  1. Mission of ECGC: The mission of ECGC is to provide support to the Indian export industry by providing cost effective insurance.
  2. Support to the exporters:  ECGC is instrumental in assisting exporters of India in the following ways:
  3. To globalise Indian trade to help Indian exporters in managing credit risks in exports;
  4. To protect exporters against unexpected losses which may arise due to failure of buyers;
  5. To assist exporters to raise export finance at competitive rates;
  6. To develop world class expertise in credit insurance among employees;
  7. To educate customers by continuous publicity and effective marketing. 

Importance, Awards and Recognitions:

The importance of ECGC in export credits is undebated. Since its establishment ECGC has been instrumental in helping and encouraging Indian exporters for exporting their goods & products abroad. ECGC is a great support to Indian exporters in all their endeavours and reducing the risks of exports. Therefore, ECGC has bagged several awards, rewards & recognitions not only from exporters govt of India and organizations in foreign countries as well.

Summary and Validation:

 In view of above the importance of ECGC is unmeasurable and is an extended arm of Indian exporters who has given huge boost to Indian exports which has on the other hand enhanced Indian economy.