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.
- 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.
- 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.