This Day in History – July 30

30 July 1957

Export Credit Guarantee Corporation of India was founded


What Happened? 

  • ECGC Limited, previously known as Export Credit Guarantee Corporation of India was founded on the 30th of July, 1957.

Background

Various government organisations and companies involved in important functions are essential for the UPSC exam. In this article, you can read about ECGC Ltd. for the IAS exam.

  • ECGC Limited, formerly known as Export Credit Guarantee Corporation of India was founded on the 30th of July, 1957.
  • It is one of the oldest initiatives of the Government of India.
  • The idea was initiated under the expertise of Mr. T.S Kapur, the finance minister of India in the cabinet of Pt. Jawaharlal Nehru.
  • The first policy was issued on 14th October, 1957.
  • The initial name was changed to Export Credit Guarantee Corporation of India Ltd. in the year 1983. It was in the year 2014 in August, that it was renamed as ECGC Ltd.
  • Apart from setting a base in providing credit Insurance support to Indian exporters, this company has also ventured into various other financial services. It started with the aim of covering the risk of exporting on credit to strengthen export promotion. Today, it stands as the seventh largest company in the world in terms of the export credit insurance market.

Important from UPSC

  • ECGC Ltd. was established in 1957 with the aim of advancing exports from India by giving credit risk insurance and related services for exports. Over the years, it has designed different export credit risk insurance products to cater to the needs of Indian exporters. ECGC is basically an export promotion company, seeking to improve the competitiveness of exports from India by providing them with credit insurance covers. 
  • The Corporation has introduced various export credit insurance schemes to meet the requirements of commercial banks offering export credit. The insurance covers enable the banks to extend timely and adequate export credit facilities to the exporters. ECGC keeps its premium rates at a reasonable level. 
  • ECGC provides (i) a range of insurance covers to Indian exporters against the risk of non – realization of export proceeds due to commercial or political risks (ii) different types of credit insurance covers to banks and other financial institutions to enable them to extend credit facilities to exporters and (iii) Export Factoring facility for MSME sector which is a package of financial products consisting of working capital financing, credit risk protection, maintenance of sales ledger and collection of export receivables from the buyer located in overseas country.

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