PHDCCI for strengthening credit insurance for exporters

Chandigarh, June 21 (UNI) The PHDCCI has called for strengthening the system of credit insurance to protect exporters against non-payment of goods that are exported.

To avoid any risks while exporting goods, credit insurance should be in place while finalising agreements in exports, former PHDCCI president said while addressing a seminar on credit protection for exporters.

The seminar was organised by PHDCCI in association with Export Credit Guarantee Corporation of India Ltd (ECGC) here today.

''Credit insurance is needed because of the commercial and political risks involved in export management'', Mr Khanna said in his opening remarks.

Giving an overview of the export scenario he said that India's merchandise exports in the first month of the current financial year has shown a record increase of over 27 per cent in US dollar terms.

He said that the growth rate witnessed in the last two years is not only being maintained but accelerated, which all the more calls for credit insurance for exporters.

Growth in exports to UK has been 30 per cent, to Singapore 54 per cent, exports to South Africa grew at 44 per cent while for China the growth rate is 35 per cent, added Mr Khanna.

Explaining the role of ECGC in export process, ECGC DGM New Delhi, Rohit Pandya said that the corporation which is functioning under ministry of commerce provides a set of credit protection for its exporter clients who are making shipment to their overseas buyers both under credit and cash terms. The prime objective of ECGC of India is limited to protect the Indian exporters from the risk of non-payment arising out of both commercial and political risk, he added.

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