The maximum defaults faced by Indian exporters in 2012-13 involved segments such as readymade garments, gems and jewellery, engineering goods, agro-products, chemicals, marine products, cotton yarn fabric and leather, N. Shankar, Chairman and Managing Director, Export Credit Guarantee Corporation of India Ltd (ECGC), said today.
Talking to presspersons here, he said the maximum claims made involved countries such as the US, the UK, Italy, Brazil, Spain and Dubai. Of these, America topped with 28 per cent claims made by exporters.
ECGC, which gives medium and long-term insurance cover to exporters, has graded all 237 countries into categories on the basis of safe exports.
With the infusion of Rs 200 crore over the last two years, the Corporation’s paid-up capital has increased to Rs 1,100 crore, while its authorised capital has gone up from Rs 1,000 crore to Rs 5,000 crore as of July 2013. Its net worth is Rs 2,500 crore, including reserves of Rs 1,400 crore.
Shankar said ECGC settled many insolvencies in the wake of plummeting exports after the 2008 global meltdown crisis. “But now we are looking up, growth-wise, and a potential increase in exports in the near future.” Exports registered negative growth in the April-July period this year even as imports also declined. But the export of handicrafts has registered growth recently, he said.
ECGC has also set up a separate recovery machinery and an “ombudsman” committee with experts from outside the Corporation.
ECGC’s net premium income has seen a 10-12 per cent growth in the last few years. In 2011-12 it was Rs 1,005 crore of which claims settlements amounted to Rs 713 crore, the largest-ever in the Corporation’s history.