Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

[pib] National Export Insurance Account (NEIA) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level : National Export Insurance Account Scheme

Mains level : NA

The Centre has approved the contribution of Grant-in-aid (Corpus) of ₹1,650 Crore to the National Export Insurance Account (NEIA).

National Export Insurance Account Scheme

  • NEIA Trust was established in 2006 to promote project exports from India that are of strategic and national importance.
  • The NEIA Trust promotes Medium and Long Term (MLT) /project exports.
  • It extends (partial/full) support to covers issued by ECGC (ECGC Ltd, formerly known as Export Credit Guarantee Corporation of India Ltd.) to MLT/project export and to Exim Bank for Buyer’s Credit (BC-NEIA) tied to project exports from India.

Benefits offered

  • The capital infusion in NEIA Trust will help the Indian Project Exporters (IPE) to tap the huge potential of project exports in focus market.
  • Support to project exports with Indian content sourced from across the country will enhance the manufacturing in India.
  • In addition, assuming an average 75% Indian content in the projects, it is estimated that around 12000 workers will move into formal sector.

Performance highlights

  • Since inception, NEIA has extended 213 covers, with a consolidated project value of Rs. 53,000 crores, to 52 countries as of 31st August 2021.
  • Its impact in enabling project exports has been most significant in Africa and South Asia.

 

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