Why not consider ECGC coverage instead of hedging to control risks?
S. Mandgi
Export Credit Guarantee Corporation of India provides Indian exporters and importers opportunities of protection against multiple risks. This corporation has been existing for a very long time and many Indian exporters and importers have taken advantage of the ECGC coverage.
I remember when i was a branch manager in Mumbai i had interacted with a Medical Equipment Retailer who would import and sell in India. He was loosing heavily due to the devaluation of the rupee , he was looking for viable options of controlling and mitigating this risk. I knew about ECGC and had suggested this option to him. The next time i met him, he said he had taken it as was satisfied that the cost of premium was far lesser than the monitory loss he could have incurred.
This could be considered a more viable option instead of hedging. Some information about what ECGC is all about is as shown below but to know more you need to visit their website https://www.ecgc.in/Portal/aboutus/aboutus.asp#q1.
S. Mandgi
Export Credit Guarantee Corporation of India provides Indian exporters and importers opportunities of protection against multiple risks. This corporation has been existing for a very long time and many Indian exporters and importers have taken advantage of the ECGC coverage.
I remember when i was a branch manager in Mumbai i had interacted with a Medical Equipment Retailer who would import and sell in India. He was loosing heavily due to the devaluation of the rupee , he was looking for viable options of controlling and mitigating this risk. I knew about ECGC and had suggested this option to him. The next time i met him, he said he had taken it as was satisfied that the cost of premium was far lesser than the monitory loss he could have incurred.
This could be considered a more viable option instead of hedging. Some information about what ECGC is all about is as shown below but to know more you need to visit their website https://www.ecgc.in/Portal/aboutus/aboutus.asp#q1.
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ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Post by : The Economic Times of India
RBI has provided some benefits to Indian exporters such as :-
1.It has allowed the banks to permit Indian exporters to receive advance payment for shipment of goods which would take more then a year to manufacture subject to certain conditions like KYC etc.
2.It has increased the time limit from 6 months to 1 year for repatriation of profits for the benefit of Indian exporters.
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