The Commerce Ministry is working with the Finance Ministry and the Prime Minister’s Office to sort out the problem of availability of finance for the export sector, Commerce & Industry Minister Suresh Prabhu has said.
“One big challenge for the export sector is the issue of finance. We have taken it up with the Finance Ministry. Once we have more working capital, in the export field you see more benefits,” Prabhu said talking to the media on the sidelines of a logistics event organised by exporters body FIEO on Tuesday.
Exporters have been asking the government to urge banks to loosen their purse strings for the sector as a decline in credit was hitting their performance.
Prabhu said that the Prime Minister was also aware of the problem and was “focussed on the issue”.
In July 2018 (up to the 20th), export credit provided by banks fell about 47 per cent to ₹21,900 crore compared to the same month last year. Overall lending to the priority sector, however, increased 7.5 per cent during the month, as per the latest RBI data. Even compared to March this year, there has been a 22.7 per cent drop in export credit.
FIEO on Tuesday, announced a major initiative to improve logistics cost effectiveness and operational efficiencies for India’s global trade.
“India is now one of the fastest growing economies of the world, and is seeking superior logistics linkages with nations all over the world. We are pleased to announce Logix India 2019, that will enable effective international trade logistics and help provide efficient and cost-effective flow of goods on which other commercial sectors depend upon.” Prabhu said at the announcement for the event.
About 100-150 foreign buyers are expected to participate in the event scheduled in New Delhi on January 31- February 2.
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