Why this matters now
ECGC is tested for: 1957 inception as Export Risks Insurance Corporation (ERIC); renamed Export Credit and Guarantee Corp 1964; renamed ECGC 1983; Govt of India 100% owned via Ministry of Commerce + Industry; covers 95% of exporter credit risk on country + buyer; Niryat Rin Vikas Yojana (NIRVIK) 2020; recent Rs 4,400 cr equity infusion by Govt 2021-23 for IPO + capacity expansion.
History
- 30 July 1957: Established as Export Risks Insurance Corporation (ERIC).
- 1964: Renamed Export Credit and Guarantee Corporation.
- 1983: Renamed Export Credit Guarantee Corporation of India Ltd (ECGC).
- 2002: ECGC granted UN Customs Authority recognition.
- 2010: Whole Turnover Policy for SMEs.
- 2020: NIRVIK (Niryat Rin Vikas Yojana) announced (60-90% cover for exporters; later modified).
- 2021: Rs 4,400 cr capital infusion plan announced (3-year tranche).
- 2022: IPO plan postponed.
- 2024: Rs 500 cr additional from Govt.
Products
| Product | Coverage |
|---|---|
| Standard Policy (SCR) | Whole-turnover for exporters; commercial + political risks 90%. |
| Multi-Buyer Exposure Policy | Volume-based cover. |
| Specific Shipment Policy | Single shipment. |
| Export Factoring | Receivables advance + risk cover. |
| SME Policy | Simplified for small exporters. |
| Whole Turnover Bankers’ Policy | Banks insured against exporter default. |
| Buyer Exposure Policy | Single foreign buyer. |
| Construction Works Policy | EPC overseas contractors. |
Recent
ECGC business (FY24): Total maximum liability ~Rs 1,73,000 cr; profit Rs 437 cr. Premium income Rs 1,050 cr. Covers ~3.5% of India’s exports. Major policy share: 75% whole-turnover, 25% specific. NIRVIK + ECLGS combined boosted SME export confidence; Government’s 3-year Rs 4,400 cr capital infusion (FY22-FY24) helped underwriting capacity expand by ~Rs 88,000 cr. Risk-rating engine overhauled with EXIM-IT 2023 PSU partnership.
UPSC angle
Know ECGC — Export Credit Guarantee Corporation of India Ltd; CPSE 100% GoI under Ministry of Commerce; HQ MUMBAI; CMD M. SENTHILNATHAN since 14 July 2023; HISTORY: 30 JULY 1957 established as EXPORT RISKS INSURANCE CORPORATION (ERIC), renamed Export Credit & Guarantee Corp 1964, renamed ECGC 1983; granted UN Customs Authority recognition 2002; Whole Turnover Policy SMEs 2010; NIRVIK (Niryat Rin Vikas Yojana) 2020 announced 60-90% cover later modified; Rs 4400 cr capital infusion 2021-23 (3-year tranche FY22-24) + Rs 500 cr 2024 IPO postponed; PRODUCTS: Standard Policy (SCR) whole-turnover commercial+political 90%, Multi-Buyer Exposure, Specific Shipment, Export Factoring receivables+risk, SME Policy, Whole Turnover Bankers Policy, Buyer Exposure, Construction Works Policy EPC overseas; FY24 max liability ~Rs 1.73 LAKH CR + profit Rs 437 cr + premium Rs 1050 cr; covers ~3.5% India exports; capital infusion expanded underwriting capacity ~Rs 88000 cr.
Frequently asked questions
When was ECGC established?
On 30 July 1957 as Export Risks Insurance Corporation (ERIC). Renamed Export Credit & Guarantee Corp 1964; renamed ECGC Ltd 1983. HQ at Mumbai.
What is ECGC’s legal status?
A Central Public Sector Enterprise wholly owned by Government of India under Ministry of Commerce & Industry. India’s only export credit insurance company.
What is NIRVIK?
Niryat Rin Vikas Yojana announced 2020 — provides 60-90% cover (later modified) for export credits via ECGC to boost exporter confidence.
Who is the current ECGC CMD?
M. Senthilnathan — took charge 14 July 2023.