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Impact on Exports due To Decline in Export Credit Government has taken Major steps for MSMEs As per data compiled by RBI, the balance outstanding for export credit by all Scheduled Commercial Banks (SCBs) increased from Rs 1,85,591 crore as on 31.3.2015 to Rs 2,43,890 crore as on 31.3.2018 before declining to Rs 2,26,363 crore as on 31.3.2019. Government has taken following major steps to increase the flow of credit to micro, small and medium enterprises (MSME) exporters: (i) Raising interest equalization rate under Interest Equalisation Scheme (IES) from 3% to 5% for MSME exports, (ii) Including Merchant exporters under IES for Pre and Post Shipment Rupee Export Credit, (iii) facilitating export under GST by permitting Letter of Undertaking in place of bond with no bank guarantee for exporting goods or services or both, (iv) Allowing merchant exporters to procure goods from domestic suppliers, for export, with nominal GST of 0.1%, (v) Provisional sanct...

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 s...