The Union Cabinet on Wednesday announced an investment of Rs 4,400 crore in Export Credit Guarantee Corporation (ECGC Ltd) Limited over the next five years. Through this, from the financial year 2022 to 2026, both exporters and banks will get assistance. After approval of this decision in the meeting chaired by Prime Minister Narendra Modi, it has been claimed that it will create 59 lakh new jobs. Of these, 2.6 lakh jobs will be created only in the organized sector. According to the government, this investment and the proposed IPO will increase the underwriting capacity of ECGC to Rs 88 thousand crore. This will boost exports to the tune of Rs 5.28 lakh crore in five years.
Preparation for listing of ECGC also
The Cabinet Committee on Economic Affairs has issued a statement saying that with the completion of the listing process of ECGC through this investment and IPO, the underwriting capacity of ECGC will increase and this will help exports further. Commerce and Industry Minister Piyush Goyal said that in the last one year, the government has had a special focus on exports. PM Modi had given us the target of achieving a high position in exports. Till September 21, goods worth $185 billion have been exported from the country. This is the largest figure ever to be done in the first six months.
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MSME sector will benefit the most
Goyal said that when small businessmen and companies export, they want insurance cover. If for some reason they do not get the payment for exports, then ECGC will provide them an insurance cover. The cabinet also approved the listing of Export Credit Guarantee Corporation Ltd. Goyal said that for the last three years, this company has been continuously giving profits and dividends. 97 percent of the exporting companies belong to the MSME sector. Investment in ECGC Ltd by the government will give a boost to the MSME sector. Under this scheme, Rs 500 crore will be released immediately. The remaining Rs 500 crore will be released next year.
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