Home / Knowledge / News / Apparel/Garments / ECGC reduces premium for exporters by 17%
ECGC reduces premium for exporters by 17%
May '16
Courtesy: ECGC
Courtesy: ECGC
The government-owned Export Credit Guarantee Corporation (ECGC) has reduced premium rates on an average by 17 per cent for exporters, but it is unlikely to cut rates on providing covers to banks as losses from bank portfolios have been rising.

“We are giving on an average 17 per cent discount from April 1 onwards. The discounts vary between 5 per cent and 45 per cent depending on the country, risk and terms of payment,” Chairman-cum-Managing Director of ECGC Geeta Muralidhar told reporters.

“However, the premium rates on bank covers will remain flat and will be reviewed once they come up for renewal,” added Muralidhar.

The loss ratio of each bank differs and the premium rates for a bank would depend on its loss experience. While the exporters portfolio is profitable for ECGC, the banks’ portfolio has been loss making.

ECGC paid total claims of Rs 1,122.84 crore to both Indian exporters and financing banks during 2015-16. Of these, 439 claims worth Rs 127.32 crore were paid to exporters under direct policies and 172 claims worth Rs 995.52 crore were paid to financing banks under the export credit insurance covers issued to banks.

Major sectors under which the claims arose include readymade garments, synthetic yarn and leather.

ECGC offers export credit insurance for banks short term where it covers pre-shipment, post shipment and covers against bank guarantee. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search