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In an effort to boost exports, the government on Wednesday approved financial assistance of over ₹3,000 crore to the Export Credit Guarantee Corporation (ECGC) and National Export Insurance Account Trust (NEIA). These were among the many proposals approved at the meeting of the Cabinet and the Cabinet Committee on Economic Affairs (CCEA).
ECGC will receive capital infusion of ₹2,000 crore while NEIA will have grant-in-aid (corpus) of ₹1,040 crore. This will help in providing insurance cover approximately up to ₹3 lakh crore. ECGC provides insurance cover to exporters of goods in case of payment default by the receiving party or in other incidence. Similarly, NEIA provides insurance cover for project export.
Interim Finance Minister Piyush Goyal said more financial assistance will help exporters, especially those belonging to Micro, Small and Medium Enterprises (MSMEs). Echoing similar sentiment, an official statement said that it would strengthen India’s exports to emerging and challenging markets like Africa, CIS (Commonwealth of Independent States) and Latin American countries.
“With a stronger underwriting capacity, ECGC will be in a better position to support Indian exporters to tap new and unexplored markets. Increased capital infusion will help ECGC to diversify its product portfolio and provide cost effective credit insurance helping exporters to gain a stronger foothold in the difficult markets,” it added.
Covers from the corporation will help in improving competitive position of India exporters in international markets. “More than 85 per cent of customers benefited by ECGC’s covers are MSMEs. ECGC covers exports to around 200 countries in the world,” it mentioned.
Talking about additional grant to NEIA, another official statement said that the amount of ₹1040 crore is to be utilised during three years from 2017-18 to 2019-20. “An amount of ₹ 440 crore has already been received for the year 2017-18 and ₹300 crore each will be given to NEIA for the years 2018-19 and 2019-20,” it said. It would strengthen NEIA to support project exports from the country that are of strategic and national importance.
Govt doctors
In other decision, the Cabinet approved a proposal for shifting of more experienced doctors belonging to Central Government and Central government entities to teaching, clinical or Public Health Programme implementation activities. The approval seeks to ensure that the doctors belonging to Central Health Service (CHS) and of other Ministries, Departments or Central Government entities, after attaining the age of 62 years, work exclusively in their respective fields of clinical expertise.
Nod for MoU
The Cabinet also approved signing of the Memorandum of Understanding (MoU) between India and Germany on cooperation in the field of civil aviation. This will lead to promotion of safe, effective and efficient development of air transport between India and Germany. The MoU in the form of Joint Declaration of Intent signifies an important landmark in the civil aviation relations between India and Germany, and has the potential to spur greater trade, investment, tourism, and cultural exchanges between the two countries.
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