Commerce and industry minister Suresh Prabhu Tuesday said his ministry is working with the finance ministry to resolve the problem of availability of finance for the export sector. “One of the main challenges for export is finance. There is a decline in finance, so we have taken it up with the finance ministry,” Prabhu said on the sidelines of an event organised by the Federation of Indian Export Organisations (FIEO). Prabhu has written to finance minister Arun Jaitley requesting his intervention to improve bank credit flow to the export sector as banks are asking for a number of documents and taking inordinately long to renew limits for export credit, which is seriously affecting flow of credit. “Once we have more working capital in the export field, you will see more benefits,” Prabhu said.
As per estimates, outstanding export credit which stood at Rs. 28,300 crore as on March 30, has come down to Rs. 22,300 crore as on June 22 this year. Prabhu said logistics will help boost India’s trade, both international and domestic, as he announced Logix India 2019, which is scheduled to be held in Delhi on January 31-February 2. About 150 buyers from at least 20 countries are expected to participate in the mega FIEO.
Source : Economic Times