The Indian government proposed a new scheme to introduce insurance cover for small exporters in the country. The new scheme also offers insurance cover amid slowing levels of exports. The new NIRVIK scheme was introduced by Finance Minister Nirmala Sitharaman to help achieve higher credit disbursement for exports.
The new scheme will reduce the amount of premium small exporters have to pay. In addition to the insurance scheme, procedures for claiming settlements have also been simplified. The commerce and industry ministry is working with the Export Credit Insurance Scheme (ECIS) to implement the new scheme.
Up to 90% of the principal amount and interest is guaranteed under the NIRVIK scheme, which is a step up from the previous 60% by the Export Credit Guarantee Corporation. In addition to the NIRVIK scheme, a new scheme will be introduced later in 2020 to reimburse taxes and duties paid by importers. It will allow digital refund of duties at both Central and State levels. It will help ease the remission of duties which is a complex process in its current state.
All major export districts in the country will receive renewed focus as the government is trying to develop them into export hubs. State governments and the Central government are working together to create better opportunities for exporters.