Financial Support: GJEPC’s Assistance in Accessing Export Financing and Insurance
The Gem and Jewellery Export Promotion Council (GJEPC) plays a pivotal role in bolstering India’s gem and jewellery sector by facilitating access to export financing and insurance. Through a range of financial schemes and insurance policies, GJEPC aids exporters in mitigating risks and managing their finances effectively.
Financial Schemes Facilitated by GJEPC
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Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE): This scheme offers credit guarantees for loans up to ₹2 crore without the need for collateral or third-party guarantees. The guarantee coverage varies from 85% for micro enterprises (loans up to ₹5 lakh) to 75% for others. Recently, the coverage has been extended to select Non-Banking Financial Companies (NBFCs) and Small Finance Banks. This initiative ensures that even small-scale exporters have access to necessary funds without the burden of providing collateral.
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Interest Equalization Scheme (IES): To enhance the competitiveness of Indian exporters, the IES provides an interest subsidy of 5% on pre and post-shipment rupee export credit for Micro, Small, and Medium Enterprises (MSMEs). This reduction in interest rates lowers the cost of capital for exporters, enabling them to offer products at more competitive prices in the global market.
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Market Development Assistance (MDA) Scheme: The MDA scheme supports exporters by reimbursing a portion of their expenses incurred during participation in international trade fairs, exhibitions, and buyer-seller meets. This assistance is crucial for exporters aiming to explore new markets and expand their global footprint.
Insurance Policies Facilitated by GJEPC
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Export Credit Guarantee Corporation (ECGC) Policies: The ECGC provides a range of credit risk insurance covers to exporters against loss in export of goods and services due to commercial or political risks. This insurance safeguards exporters from potential payment defaults by overseas buyers, ensuring that their revenue streams remain protected.
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Swasthya Ratna Policy: Recognizing the importance of health security, GJEPC has introduced the Swasthya Ratna policy, a group mediclaim scheme tailored for employees of member companies. This policy ensures that the workforce remains healthy and productive, indirectly supporting the financial stability of exporting firms.
Impact of GJEPC’s Initiatives
GJEPC’s financial assistance and insurance schemes have significantly contributed to the growth of India’s gem and jewellery exports. For instance, in the fiscal year 2021-22, the sector witnessed exports worth $39.1 billion, marking a substantial increase from the previous year. This growth underscores the effectiveness of GJEPC’s initiatives in enhancing the global competitiveness of Indian exporters.
Altus Exports: Partnering with Indian Manufacturers for Global Success
While GJEPC provides the necessary financial and insurance support, partnering with experienced export facilitators like Altus Exports can further amplify an Indian manufacturer’s success in international markets. Altus Exports specializes in delivering the best of India’s textiles, handicrafts, chemicals, and food products to the world. Their commitment to quality, sustainability, and customer satisfaction makes them an ideal partner for manufacturers aiming to expand globally.
How Indian Manufacturers Can Collaborate with Altus Exports
Indian manufacturers looking to export their products can benefit from Altus Exports’ extensive network and expertise. By partnering with Altus Exports, manufacturers can:
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Access Global Markets: Leverage Altus Exports’ established channels to introduce products to international buyers.
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Ensure Quality Compliance: Benefit from rigorous quality control processes to meet global standards.
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Receive Logistical Support: Utilize comprehensive logistics solutions to ensure timely and efficient delivery of products.
To explore partnership opportunities, manufacturers can visit Altus Exports’ manufacturer partnership page.
Conclusion
GJEPC’s financial schemes and insurance policies have been instrumental in mitigating risks and supporting exporters in managing their finances. By availing these benefits and collaborating with proficient export partners like Altus Exports, Indian manufacturers can navigate the complexities of international trade and achieve sustained success in the global marketplace.