Exporters Get ₹3,362 Cr Boost From New Credit Guarantee Scheme

Lenders have disbursed ₹3,361.83 crore in credit guarantees to 774 exporters within the first month of the Credit Guarantee Scheme for Exporters (CGSE). This significant allocation aims to shield Indian businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), from prevailing global trade pressures, including substantial U.S. tariffs.

Scheme Rollout and Objectives

The Rs 20,000-crore CGSE, approved by the Union Cabinet on November 12, provides a 100% credit guarantee. The National Credit Guarantee Trustee Company Ltd (NCGTC) underwrites these facilities for Member Lending Institutions (MLIs). This mechanism is designed to encourage banks and financial institutions to extend additional credit to eligible exporters.

The scheme, operational since December 1, 2025, is intended to foster market diversification and sharpen the global competitive edge of Indian exporters facing various economic headwinds. The Department of Financial Services (DFS) under the Finance Ministry spearheads its implementation.

Initial Performance Metrics

As of January 2, 2026, lenders had received applications totaling ₹8,764.81 crore from 1,840 entities. Of these, ₹3,361.83 crore in guarantees were sanctioned to 774 applicants. The CGSE remains active until March 31, 2026, or until the full guarantee corpus of ₹20,000 crore is deployed.

The report also touched upon the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), which offers credit guarantees up to ₹100 crore for purchasing plant and machinery. This initiative aims to stimulate manufacturing by ensuring credit availability for capital expenditure.

Broader Banking Sector Performance

Separately, the DFS highlighted robust performance across the banking sector. Scheduled Commercial Banks (SCBs) achieved a record aggregate net profit of ₹4.01 lakh crore. Public Sector Banks (PSBs) also reported substantial profits, with an aggregate net profit of ₹1.78 lakh crore for fiscal year 2024-25, and ₹0.94 lakh crore in the first half of fiscal 2025-26.

Global deposits and advances for PSBs have seen substantial growth, nearly doubling since March 2015. Furthermore, the Gross Non-Performing Asset (GNPA) ratio for PSBs has significantly declined to 2.30% as of September 2025, a marked improvement from previous years and a peak in March 2018. The Capital Adequacy Ratio for PSBs has also strengthened considerably.