Critical Analysis of Credit & Guarantee Corporation Limited, India (ECGC): Finance, Risks & Guarantee in Context of Contemporary Crisis of Currency Appreciation

15 Pages Posted: 16 Oct 2007

Date Written: October 15, 2007

Abstract

Export Credit Guarantee Corporation of India Limited, (ECGC) is a company wholly owned by the Government of India. It functions under the administrative control of the Ministry of Commerce and is managed by a Board of Directors representing Government, Banking, Insurance, Trade and Industry primary objective is to promote country's exports by covering the risk of exports on credit by providing insurance cover to Indian exporters against non-realisation of export proceeds due to commercial or political risks; and giving guarantee to banks and other financial institutions to enable them to extend credit facilities to exporters on liberal basis. ECGC is performing well to assist Indian exporters and bankers.

The export business in India is growing, whether it is related to goods or services. The India is a growing consumer hub as well. The contemporary international financial issues, namely US sub-prime lending, appreciation of Indian currency; growing export and flow of FIIs investment in India are changing the equation for exporters, bankers, investors and therefore ECGC. This research study aims at determining how ECGC will be able to fulfill its objective in the current scenario. The research will address studying present level of ECGC performance and to compare with their counterparts, and to evaluate performance on various measurable parameters. What shall be the impact of current trend if it continues on spread sheet and its impact on stakeholders and ECGC? And finally, to suggest what additional measure ECGC should take to perform in adversity. The study envisages critical analysis of various schemes of ECGC vis-à-vis financial performance.

Study will use Secondary data and review of present literature available, prepare a theoretical framework and using primary data, an analysis will be carried out to test hypothesis in line of objective of the study.

Keywords: finance, export, credit, guarantee, ECGC

JEL Classification: E6, F3, E00, E5

Suggested Citation

Sapovadia, Vrajlal K. and Patel, Vaishali, Critical Analysis of Credit & Guarantee Corporation Limited, India (ECGC): Finance, Risks & Guarantee in Context of Contemporary Crisis of Currency Appreciation (October 15, 2007). Available at SSRN: https://ssrn.com/abstract=1021685 or http://dx.doi.org/10.2139/ssrn.1021685

Vaishali Patel

Techno Consult ( email )

Paldi
Ahmedabad, Gujarat 380007
India

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