Question
Which of the following schemes facilitates the easy
availability of credit to exporters while also reducing risks associated with exports?Solution
The Export Credit Guarantee Scheme (ECGS) plays a crucial role in supporting exporters by: • Ensuring smooth access to credit, • Reducing risks linked to international trade and delayed payments, and • Enhancing confidence among exporters and lenders. Other schemes serve different purposes: • TIES: Focuses on developing trade infrastructure. • MAI: Helps exporters in market development and promotion. • Interest Equalisation Scheme: Offers subsidized interest rates on export credit. • RoSCTL: Provides rebates on state and central taxes to make Indian exports competitive. Thus, ECGS specifically addresses the credit availability and risk mitigation aspect of exports.
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