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

Apparel/Garments | On 18th Feb 2017

Bangladesh apparel sector has 95% local investors: BGMEA

Over 95 per cent of the total investors in the Bangladesh apparel...

Textiles | On 18th Feb 2017

Smriti Irani resolves cutting of carpets issue at ports

During a meeting held with stake holders of the carpet weaving...

Apparel/Garments | On 18th Feb 2017

Andhra Pradesh inks MoUs to set up 12 apparel units

At the recent CII Partnership Summit held in Hyderabad, memorandum of ...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Yash P. Kotak
Bombay Hemp Company

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search