The export credit Gurantee Corporation which supported country's exports to
the tune of 2 lakhs, 65,000 crores during the last financial year, has posted
profit before tax of Rs 407 crores and has declared a dividend of Rs 72.5
crores at the rate of Rs five per share
The results were announced at the 59th Annual General Meeting of ECGC,
chaired by Ms. Rita Teaotia, Commerce Secretary was held in Udyog Bhawan on
It was noted that despite ECGC reducing the premium rates (in order to
bring down the transaction costs of the exporters) by an average 17 per cent
under policies, ECGC recorded only a marginal decline in premium of less than 4
ECGC has posted Profit Before Tax of Rs.407 Crores, an increase of 5 oer
cent over previous year. It has also declared a dividend of Rs.72.5 Crores at
the rate of Rs.5 per share.
ECGC’s support of total exports at Rs.2,65,000 Crores was around 15 per
cent of total merchandise exports in 2016-17. A significant aspect of ECGC’s
performance was that 85 per cent of its support was accounted for by MSME
It was mentioned that 12029 covers were in force as on 31st March, 2017
with a total maximum liability of Rs.86,215 Crores. With a view to increase Indian
exports in new markets like Africa, covers provided by ECGC to exporters
exporting to Africa recorded a growth of 15 per cent over previous year. This
was even when exports to Africa recorded a decline of 5 per cent in 2016-17.
ECGC has over 4,00,000 Overseas Buyers on record of which more than
1,20,000 buyers are regular and active buyers for Indian exporters. The
cumulative exposure on these active buyers made available by ECGC is more than
Rs.1,25,000 Crores for Indian exporters. An active management of exposures on
these buyers is supported by a strong data base, built over more than five
ECGC also supports diversification of exports to Focus Markets identified
by Department of Commerce by favourably rating such countries to enable
coverage of exports at a very competitive rate.
ECGC has been a pioneer in providing ECIB covers to banks, which enables
the exporters to get adequate and timely finance from Banks at pre and
Recognizing ECGC’s significant contribution in helping Indian Exporters to
get much needed working capital finance for the last 50 years, it was most
fittingly accorded in its Diamond Jubilee Year the Best ECA Award by Trade and
Forfaiting Review for 2017, an award that has been in vogue for last twenty years.
ECGC’s unique achievement is when pitched against stalwarts ECAs from Germany
and UK, it won the award.
ECGC also manages the NEIA Trust of the Government of India that provides
credit insurance covers to Medium and Long Term Exports, including Project
Exports. The NEIA has supported 76 Contracts with a project value of around
Rs.35,000 Crores, being executed by Indian Exporters in 29 countries.
During the Financial Year 2016-17, ECGC hosted the meeting of Heads of
BRICS ECAs in New Delhi while India was the BRICS Chair. It has also organized
2 International Workshops for BRICS ECA participants. It also hosted Meeting of
Heads of ECAs of G12 Countries consisting of 8 OECD and 4 BRIC Countries, in
Chennai during the year.