Question : ECGC

(a) whether the Union Government has proposed to invest Rs. 4400 crore rupees in Export Credit Guarantee Corporation (ECGC) Ltd to provide support to exporters as well as banks;
(b) if so, the objectives of the aforesaid investment;
(c) whether infusion of capital will help to create 59 lakh new jobs;
(d) if so, the details thereof;
(e) the details of the export target fixed by the Government after the infusion of capital;
(f) whether a series of export-related schemes and initiatives were taken by the Government over the last few years; and
(g) if so, the number of jobs created as a result thereof so far?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SMT. ANUPRIYA PATEL)
(a) &(b): Government has approved infusion of Rs.4,400 crore in ECGC Ltd. over the period from 2021-22 to 2025-26 with the objective to increase the company’s capacity to underwrite risks by Rs.88,000 crore.

(c) & (d): In terms of the report on ‘Export to Jobs’ published by the World Bank and International Labour Organisation in February 2019, an estimated additional exports of ?5.28 lakh crore will lead to formalization of 2.6 lakh workers. The total number of workers (both formal and informal) is estimated to increase by 59 lakhs as per the report.

(e): The infusion of capital is estimated to support additional exports of Rs.5.28 lakh crore over the period 2021-22 to 2025-26.

(f) & (g): Support given by the Government under various export promotion schemes such as Remission of Duties and Taxes on Exported Products (RoDTEP), Trade Infrastructure for Export Scheme (TIES), Transport and Marketing Assistance (TMA) for Specified Agriculture Products, Interest Equalisation Scheme (IES), Market Access Initiative (MAI) Scheme, along with other trade policy interventions, enable the Indian exporters to access/ secure foreign markets for their goods/ services. The overall growth of the Indian export over a long period of time has cumulative effect on creation of jobs in various sectors of export related activities.
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