State-run export credit agency ECGC Ltd has upgraded risk rankings of two dozen countries, thereby substantially reducing insurance costs for Indian exporters in these geographies, to protect exporters from the adverse impact of US tariffs and encourage them to diversify in alternative markets, two officials said.
The country risk ratings of 24 countries were upgraded under short-term exports after a review, said the officials, asking not to be named. Often, short-term exports involve the realisation of the order amount within one year. ECGC Ltd — erstwhile the Export Credit Guarantee Corporation of India — supported exports worth ₹8.55 lakh crore in 2024-25, over 16.3% annualised growth. Its net profit in FY25 was ₹2,077 crore, a 3.8% dip from ₹2,159 crore in FY24.
A commerce ministry’s year-ender confirmed the development. “Amidst the global economic uncertainty and the likely trade disruption caused by the US tariff hike, ECGC has undertaken strategic review of country ratings to liberalize underwriting and encourage market diversification,” it said. India’s trade diversification strategy helped the country to post about 2.62% annualised growth in merchandise exports to $292 billion in April-November 2025 as exporters braved 50% tariff in the US market.
“This would assist exporters, particularly MSEs [micro and small enterprises], in de-risking their business and exploring new export destinations such as Latin America, the Middle East, Africa, East Asia, and other emerging markets, thereby reducing over-exposure to markets affected by tariffs, protectionist policies or restrictive market access,” it added.
The ECGC review has analysed those countries that are affected by the recent geopolitical events, along with those having high potential for a mutually beneficial trade relationship with India, the officials said. Countries assessed include India’s strategic partners as well as countries with potential for trade growth, they said.
The review upgraded Bhutan, Cameroon, Cape Verde, Congo, El Salvador, Eritrea, Ghana, Honduras, Kenya, Liberia, Malaysia, Nicaragua, Nigeria, Panama, Peru, South Africa, Sri Lanka, Sweden, Trinidad and Tobago, Turkey, Uganda, Uruguay, Venezuela and Zambia.
“In view of the increased uncertainty in the global trade landscape, it is imperative for the Indian export sector to explore and develop alternative markets, including new market destination countries… Post the upgradation in country ratings, the premium rates applicable for various ECGC policies will proportionally reduce, as the premium rates depend primarily on the country rating of the country of destination of goods,” one of the officials said.
Higher risks involve higher insurance premiums. While A1 denotes a minimal or “insignificant” risk category, A2 is low risk, B1 (moderately low risk), B2 (moderate risk), C1 (moderately high risk), C2 (high risk) and D is very high risk.
According to the recent review, Malaysia, Sweden, and Uruguay have been upgraded from A2 to A1. Bhutan, Panama, Peru, South Africa, and Trinidad and Tobago have been classified from B1 to A2. Upgradation is two notches up in the case of Turkey, from B2 to A2. Cape Verde, Honduras, Nicaragua, Nigeria and Uganda have been moved up from B2 to B1.
While Kenya and Liberia have been moved from C1 to the higher category of B2, El Salvador, Ghana, Sri Lanka and Venezuela moved up from C2 to C1. A two-notch jump from D to C1 is seen in two cases – Zambia and Eritrea. Similarly, Cameroon also moved up from the very high-risk category (D) to C2.