Keep exporters hassle free!
They
are focusing to attain
higher
double-digit growth
The
issue needs urgent
attention
of the government
FIEO
President, Mr Ganesh Kumar Gupta has said that the bank credit issue of
exporters are yet to be resolved. PSU
Banks officials including MDs, EDs, GMs, AGMs are not accessible to exporters
particularly from the MSME sector. This has tightened the hands of these
exporters to take orders.
Exporters
are not able to discuss issues and challenges with regard to availability and
cost of credit to the exports sector. Commerce Minister, Mr Suresh Prabhu, who
is taking several steps to promote exports would not fructify if banks would
not lend to exporters smoothly and at affordable rates.
On
one hand, the government is pushing digital India initiative and paperless
transactions, these banks demand bundles of documents, collateral and other
papers for considering our applications for smaller limit (Rs one to five
crores) of loan. It takes months and months to get these limits approved and in
the mean time we lose our orders. The issue needs urgent attention of the
government.
Similar
is the problem with the ECGC, which is very reluctant to extend insurance
cover. They reject claims on very flimsy grounds. I would urge the Commerce
Minister to look at the matter on an urgent basis. If banks and ECGC continue
to behave like this, we would not be able to register double digit growth rate
in exports.
The
matters which should be the focus of the government to push exports include:
1.
Enhancement of Duty Drawback rates.
2.
More products should be included under MEIS.
3.
The Interest Equalisation scheme increased from three to five per cent by the
Prime Minister should be extended to merchant exporters as well, as they
contribute about 35 per cent in the total exports.
4.
To promote exports of GI products, government should join hands with FIEO to
set up big stores at airports also.
5.
GST refunds at airports should start immediately.
These measures would
help in reaching USD 350 billion exports and recording substantial growth
rates.
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