Union Cabinet approves India-UAE pact on economic corridor
The aim of the IGFA is to enhance the bilateral relations and to further strengthen the relations between the two countries in the ports, maritime and logistics sectors.
In a bid to help exporters and ensure their payments, the Union Cabinet on Wednesday approved capital infusion of Rs 4,400 crore to ECGC (Export Credit Guarantee Corporation of India) over a period of five years so as to subsidize the insurance of export shipments for exporters.
The decision was taken in the Union Cabinet here on Wednesday to boost the exports sector. The approved infusion along with efforts made to suitably synchronize with the listing process of ECGC through the Initial Public Offering will increase the underwriting capacity of ECGC to support more exports, the Cabinet brief said.
ECGC was established by the Government of India under the Companies Act in 1957 to promote exports by providing credit insurance services to exporters against non-payment risks by the overseas buyers due to commercial and political reasons.
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It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers. ECGC endeavours to support the Indian export industry with its experience, expertise and an underlying commitment to progress and advance of India’s exports, the Ministry said.
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