RAS question
Under the new collateral guarantee intervention launched for the Export Promotion Mission, what is the maximum cover percentage for Medium exporters?
Correct answer: (D) 65 percent.
Under the Export Promotion Mission's collateral support intervention, Medium exporters can receive a maximum guarantee cover of 65 percent.
Explanation
The collateral guarantee intervention under Niryat Protsahan is meant to improve MSME exporters' access to formal export credit when collateral is a constraint. The DGFT trade notice says the scheme is being operationalised through CGTMSE on a pilot basis for export-related working capital loans. Its coverage parameters distinguish between enterprise sizes: Micro and Small exporters can receive up to 85 percent credit guarantee coverage, while Medium exporters receive up to 65 percent. The guidelines' coverage table repeats this structure, showing a 10 crore guarantee ceiling and total coverage of 65 percent for Medium Enterprises. That is why the maximum cover percentage for Medium exporters is 65 percent, not the higher 85 percent meant for Micro and Small exporters.
Why the other options are wrong
- (A) 85 percent applies to Micro and Small exporters under the intervention, not to Medium exporters.
- (B) 75 percent is shown as CGTMSE coverage within the Micro and Small Enterprises table, but it is not the total maximum cover for Medium exporters.
- (C) 50 percent is not listed as the maximum cover for Medium exporters in the cited Export Promotion Mission collateral support guidelines.
Concept
This tests the Indian Economy syllabus area on export promotion, MSME credit support and government guarantee interventions. Such details recur in RAS because schemes often turn on beneficiary category, implementing agency and numerical ceilings.