The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Credit Guarantee Scheme for Exporters (CGSE) to provide up to ₹20,000 crore in collateral-free credit support to exporters, including MSMEs, through 100 percent credit guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC).
The new scheme aims to strengthen exporters’ access to working capital, support market diversification, and enhance India’s global trade competitiveness. It is also expected to play a key role in the country’s efforts to achieve the USD 1 trillion export target, while supporting employment and liquidity across export-oriented sectors.
The Department of Financial Services (DFS) will implement the scheme through NCGTC, with Member Lending Institutions (MLIs) extending additional credit to eligible exporters. A management committee chaired by the Secretary, DFS, will monitor and oversee implementation.
According to the government, the scheme is designed to boost liquidity and business continuity by enabling collateral-free lending to both MSME and non-MSME exporters. By easing access to credit, the initiative is expected to encourage exporters to expand into new and emerging global markets, thereby reinforcing India’s position in international trade.
Exports currently account for nearly 21 percent of India’s GDP and support over 45 million jobs, with MSMEs contributing around 45 percent of total exports. The Cabinet noted that extending financial support through CGSE would ensure the continued growth of export-driven industries and advance India’s vision of Aatmanirbhar Bharat.
The government said the scheme would also strengthen India’s macroeconomic stability by sustaining export growth, improving foreign exchange reserves, and supporting long-term economic resilience.