New Delhi. The Central Government today took an important decision on Wednesday 29 September to promote the export sector by reducing the trade deficit. Under this, the government has approved the contribution of grant-in-aid of Rs 1,650 crore to the National Export Insurance Account (NEIA) over the next five years (FY 2021-2022 to FY 2025-2026).
With this step of the government, the exporters will instill confidence in the exporters who are exporting to foreign countries. Along with this contribution will also increase employment in the country. This will encourage exporters to export without any hesitation.
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It is to be noted that infusion of capital in NEIA Trust will help Indian Project Exporters (IPIs) to tap the huge potential of project exports in the focus market. Supporting project exports with Indian material procured from across the country will enhance manufacturing in India. NEIA will enhance the underwriting capability of the Trust with a grant of Rs 1,650 crore.
This will then enable NEIA to support project exports of about Rs 33,000 crore at full capacity utilization which in turn will increase the estimated production of domestically manufactured goods by Rs 25,000 crore.
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The NEIA Trust was established in 2006 to promote project exports from India of strategic and national importance. The Trust promotes project exports of medium and long term (MLT) for MLT (Medium and Long Term) by providing (partial/full) support to the covers issued by ECGC (Export Credit Guarantee Corporation). Presently Exim Bank for Buyers Credit (BC-NEIA) is involved in project exports from India.
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