ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports. It functions under the administrative control of Ministry of Commerce & Industry, and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community. Over the years it has designed different export credit risk insurance products to suit the requirements of Indian exporters and commercial banks extending export credit.

ECGC is essentially an export promotion organization, seeking to improve the competitiveness of the Indian exporters by providing them with credit insurance covers. ECGC keeps its premium rates at the optimal level.

What does ECGC do?

• Provides a range of credit risk insurance covers to exporters if the Importer does not pay the value of export of goods and services.
• Offers Export Credit Insurance covers to banks and financial institutions to enable exporters to obtain better facilities from them.
• Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.

During 2019 – 2020 financial year, the party had filed the claim for the amount of Rs.408.41 crores and for the previous years the claim filed were for Rs.1013.31 crores.  However, the recovery were made by ECGC only Rs.166.44 crores for 2019-2020 and Rs.150.83 crores.  The recovery rate is very low despite the facts all the global buyers were verified and found worthy of credit.

ECGC has also not been efficient in settling the claims of the creditors/ exporter and there was outstanding claims pending for Rs.25679211.83 crores and total number of 811 claims were pending during the financial year 2019 – 2020. 

It is causing the serious hardship to the exporter and many claims that heir was not settled because of wrong reasons.  There are numerous case is pending before various courts in India.  The major defaulter debtors are from USA, UK, Dubai, Turkey, Germany, Hongkong and Egypt.  The majorities of the debtors from the above country.  ECGC need to have robust strategy to recover the debt from the debtors.