E.C.G.C provides insurance to exporters against payment defaults by overseas buyers. It aims to encourage and facilitate global trade for Indian exporters. E.C.G.C offers standard policies that protect exporters against political and commercial risks for specific shipments. It also offers special policies and financial guarantees to exporters. A special scheme supports small exporters with higher insurance coverage and procedural relaxations.

1. ROLE OF E.C.G.C IN
EXPORT BUSINESS
PRESENTED BY :- KARAN SHARMA
M.B.A (INTERNATIONAL BUSINESS)
ROLE OF E.C.G.C
IN EXPORT
BUSINESS

2. KEY POINTS
• WHAT IS E.C.G.C
• WHAT E.C.G.C PROVIDES
• MAIN OBJECTIVES OF E.C.G.C
• STANDARD POLICIES
• SPECIAL POLICIES
• FINANCIAL GURANTEE
• SPECIAL SCHEME

3. WHAT IS E.C.G.C ?
• E.C.G.C Stands for export credit and guarantee
corporation. It is under the administrative control of
ministry of commerce.
• It provides credit guarantee on default of payments by the
buyer. It works as an insurance firm who guarantees
export payment if buyer defaults in making payment.
• It works on “no profit no loss” basis.

4. E.C.G.C PROVIDES
• Offers insurance protection to exporters against various kinds of
risks involved in export business.
• Provides guidance in export related activities
• Makes it easy to obtain export finance from banks/ financial
institutions
• Provides information on credit worthiness of overseas buyers
• Assists exporters in recovering bad debts

5. MAIN OBJECTIVES OF E.C.G.C
• To encourage and facilitate globalization of india’s trade.
• To assist indian exporters in managing their credit risks by
providing timely information on worthiness of the
buyers,bankers and the countries.
• To facilitate availability of adequate bank finance to the
indian exporters by providing surety insurance covers for
bankers at competitive rates.

6. STANDARD POLICIES
• Standard Policies is issued by the ecgc to exporter to
protect them against risk of international trading
especially those relating losses in export on deferred
terms of payment.
• Specific shipment policy (political risk)
• Specific shipment policy (comprehensive risk)
• Contract policy

7. SPECIAL POLICIES
• Special Policies,besides the risk covered under standard policies are issued
by ecgc to cover the risk as desired by the exporter to meet their needs in
export transactions.
• Construction work policy covers the risk of non payment of contract price
to the contractor by the foreign contractee.
• Policy for consignment export cover the loss on consignment transaction.
• Services policy covers the risk of non payment for services rendered
abroad. Policy cover only technical and professional services.

8. FINANCIAL GUARANTEE
• Ecgc provides financial guarantee to the banks advancing credits to
exporters.
• Packing credit guarantee or pre-shipment finance
• Post shipment exporter credit guarantee
• Export finance guarantee
• Export production finance guarantee
• Export performance guarantee

9. SPECIAL SCHEME FOR SMALL SCALE EXPORTERS
• For small exporters ecgc offers a high cover (95% against
commercial rises and 100% against political rises) and
makes procedural relaxation in mattes of settlement of
claim section of credit limit etc.
• The scheme applies to the exporters whose annual export
turnover is not more than 10 lakhs.

10. THANK YOU
THANK YOU