India Allocates ₹20,000 Crores for Credit Guarantee Support to Boost Exporters in FY26

Government Boosts Exporters with ₹20,000 Crore Credit Guarantee Scheme in FY26

In a strategic move to strengthen India’s export ecosystem, the Union Cabinet approved a ₹20,000 crore allocation for the Credit Guarantee Scheme for Exporters (CGSE) in the fiscal year 2025-26. Administered by the National Credit Guarantee Trustee Company Limited (NCGTC), the scheme offers 100% credit guarantee coverage to Member Lending Institutions extending collateral-free loans to eligible exporters, including MSMEs.

The CGSE is designed to ease liquidity constraints for exporters, enabling access to additional working capital of up to 20% of sanctioned export limits, with loans up to ₹50 crore covered. This support is expected to help exporters maintain operations, diversify markets, and strengthen India’s march towards the $1 trillion export target.

Officials highlight that exports form nearly 21% of India’s GDP, with MSMEs contributing around 45% of total export volumes. Enhanced credit access will bolster these sectors, protect jobs, and sustain macroeconomic stability.

The scheme complements the broader Export Promotion Mission (EPM), which has a total outlay of ₹25,060 crore over six years, focusing on trade finance, market access, and export quality enhancements.

Key Highlights:

₹20,000 crore budget earmarked for Credit Guarantee Scheme for Exporters (CGSE) in FY26.

Provides 100% credit guarantee to lending institutions for collateral-free loans to exporters.

Covers loans up to ₹50 crore and additional working capital up to 20% of sanctioned export limits.

Focus on MSMEs and diversification into new and emerging markets.

Exports contribute approx. 21% to GDP, with significant MSME involvement.

Part of larger ₹25,060 crore Export Promotion Mission running till FY31.

Aims to strengthen liquidity, competitiveness, and job protection in export sectors.

Source: Economic Times, Press Information Bureau, Business Standard (2025)