India focuses export credit
Timely Availability of Export Credit is
Key to India’s Export Growth: Piyush
Goyal
Union
Minister of Commerce and Industry & Railways, Piyush Goyal, is holding a
meeting in New Delhi on issues related to export credit with representatives of
exporters’ organisations like FIEO, Gem and Jewellery Export Promotion Council
(GJEPC), representatives of exporters’ organizations, Finance Ministry
officials and heads of financial institutions.
Ministers
of State for Commerce and Industry, Hardeep Singh Puri and Som Parkash,
Commerce Secretary, Anup Wadhawan, Secretary MSME, Dr. Arun Kumar Panda,
Director General of Foreign Trade, Alok Vardhan Chaturvedi and senior officials
of the Department of Commerce are also attending the daylong meeting.
Timely
and efficient availability of export credit is critical for any trade activity
and is one of the key drivers that boost growth of export. This was stated by
Commerce Minister in his opening address. The time has come when we should move
away from subsidies to easy availability of cheaper credit to exporters, the
Minister said.
Piyush
Goyal informed that in the last few years the share of export credit has come
down and this is a cause of concern especially for the MSME sector that suffers
due to demand of collateral from lending institutions.
Commerce
Minister informed that today’s meeting with stakeholders has been called to
address this significant challenge and to redress the situation based on the
inputs given by participating organizations and institutions.
Commerce
Minister further said that in order to alleviate the burden on exporters and to
make Indian exports competitive and on par with global best practices we have
to first develop a framework with a stable policy that is internationally
acceptable, consistent and robust and then look for solutions within that
framework based on trust, integrity and due diligence. Greater transparency has
to be brought into the work being done by Government organizations, export
promotion councils and financial institutions.
The
Minister informed that transparency will ensure that the genuine competitive
advantages of India’s exports may be harnessed. The Minister hoped that outcomes
of meeting with all stake holders will not only provide a vision for the export
sector but will also give a road map for implementation and action by
Government departments and financial institutions.
Piyush
Goyal also hoped that the result of this meeting will lead to export credit
tripling in the next five years and allow India to be on par with the rest of
the world where credit is cheaper and interest rates are lower.
The
meeting is being attended by the representatives of the Ministry of Finance,
Department of Economic Affairs, Department of Financial Services, officials
from RBI, State Bank of India, Canara Bank, Punjab National Bank, HDFC Bank,
Kotak Mahindra Bank, Axis Bank, Barclays Bank, Citi India, Bank of America,
EXIM Bank, ECGC, Indian Banks’ Association, FIEO, EEPC, GJEPC, Laghu Udyog
Bharati, FICCI and CII.
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