NEIA Trust will help the Indian Project Exporters (IPE) to tap potential markets
The Government has approved Rs.1,650 crore capital infusion in approved contribution of Grant-in-aid (Corpus) to National Export Insurance Account (NEIA) to boost exports over a period of five years from FY 2021-2022 to FY 2025-2026.
The capital infusion in NEIA Trust will help the Indian Project Exporters (IPE) to tap the huge potential of project exports. Support to project exports with Indian content sourced from across the country will enhance the Indian manufacturing sector performance and growth.
The corpus contribution of Rs.1,650 crore will enhance the underwriting capacity of the Trust and will enable NEIA to support project exports worth Rs.33,000 crore at full capacity utilization that in turn will translate into an estimated output of domestically manufactured goods to the tune of Rs.25,000 crore, the Ministry of Commerce and Industry said on 29 Sept 2021.
In addition, assuming an average 75% Indian content in a project, in terms of the report ‘Export to Jobs’ by World Bank and International Labour Organisation, it is estimated that around 12,000 workers will move into formal sector. Further, the total workers (number of both formal and informal) will increase by 2.6 lakh in the relevant sectors as per estimates based on the report.
The NEIA Trust was set up in 2006 to promote Medium and Long-Term (MLT) project exports by enabling credit and political insurance. #exports #investment #projects /fiinews.com
