Home / Knowledge / News / Textiles / We make exports from India 'Risk Free!' – GM, ECGC

We make exports from India 'Risk Free!' – GM, ECGC

15
Sep '09
Export Credit Guarantee Corporation of India Ltd. (ECGC) was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit. Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India.

It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community. ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.8 billion and authorized capital Rs.10 billion.

To bring to our valued readers the role, fee structure and types of services provided by ECGC, Fibre2fashion spoke exclusively to V Viswanathan, General Manager ( National Marketing) at ECGC who was kind enough to spare his valuable time and provide exhaustive replies to our queries.

F2F: What is the role of ECGC in safeguarding payment of exporters in international trade?

V.V: ECGC is a credit insurance organization working under the administrative control of the Govt of India, Ministry of Commerce. The Corporation issues credit insurance covers to exporters to protect them against the payment risks that may arise due to non payments risks of overseas buyers or importing countries. The Corporation also issues credit insurance covers to banks for their working capital finance for exporters protecting the banks against their lending risks.

F2F: What is the fee structure and premium percentage of insured value?

VV: ECGC offers a variety of credit insurance covers to exporters. Exporters can choose to cover a single consignment / order / contract or a single buyer or a series of shipments and more than one buyer. Premium rates are determined on two broad parameters viz., Country to which the shipments are made and the payment terms. In other words, the premium is a matrix.

Importing countries are classified under 7 categories as A1, A2, B1, B2, C1, C2 and D depending on a set of economic and political factors. Exports to countries classified under A1 will attract low premium rates. As the classification goes down from A1 towards D, the premium rates will increase. Similarly, payments secured by a Letter of Credit opened by a bank in the buyer's country will attract lower premium rates compared to the direct credit offered to buyers like documents against payment, documents against acceptance and open delivery terms.

Premium rates are available with any of our offices and an exporter can advise the terms of credit and the destination country and seek the rates. Here again, premium rates willvary depending on the insurance cover that the exporter may seek to obtain. Rates are separate for transaction based covers, turnover covers and exposure based covers.


Must ReadView All

Vietnamese side of the border crossing with Hekou, China. Pic:  Klodien | Dreamstime.com

Textiles | On 27th Nov 2021

Efforts on to boost trade between Chinese & Vietnamese provinces

Trade agencies of Lao Cai province in the northwest region of Vietnam ...

Pic: Shaja | Dreamstime.com

Textiles | On 27th Nov 2021

US’ imports of polyester textured yarn to drop in coming months

The US’ imports of polyester textured yarn of HS code 540233 are...

Pic: Tatiyana Akimova | Dreamstime.com

Textiles | On 27th Nov 2021

Sri Lanka’s textile & garment exports on path to cross $5bn this year

After registering a steep fall of 21 per cent year-on-year to $4.423...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Led by MMF, Indian apparel exports likely to double in next 3 years

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

Kishina Daruka and Mishika Daruka,

Kishina Daruka and Mishika Daruka

Headquartered in Kolkata, India, sustainable clothing brand Ora was...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Manish Malhotra, Label Manish Malhotra

Manish Malhotra
Label Manish Malhotra

A multitalented designer and founder of an eponymous label, Manish...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2021

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


Advanced Search