In talks with the Ministry of Finance on the credit problems of the exporters: Suresh Prabhu

Trade and Industry Minister Suresh Prabhu said on Tuesday he had raised the issue of declining credit to exporters with the finance ministry to ensure adequate availability of funds.

Prabhu said exports were increasing and the ministry was taking measures to further accelerate the growth rate.

“One of the main challenges for exporting is finance. There is a decline in (export) finance, so we have raised the issue with the Ministry of Finance… I think the Minister of Finance is also looking into this (as in) how we can improve the flow of credit in the export sector, ”the minister told reporters here.

Federation of Indian Export Organizations (FIEO) President Ganesh Gupta has repeatedly demanded an increase in credit flows to the export sector, as a sharp decline in credit would impact export growth.

The minister suggested earlier that loans to exporters should be considered priority sector loans by banks.

It is estimated that the outstanding export credit, which stood at Rs 28,300 crore as of March 30, has fallen to Rs 22,300 crore as of June 22 of this year.

Prabhu also said that to boost shipments, exporters should explore new markets, including Africa, Latin America, East Asia, South Asia and the Middle East.

He said the logistics sector will play a key role in improving the competitiveness of Indian products in world markets.

The ministry and the FIEO are organizing here “Logix India” from January 31 to February 2, 2019.

Speaking on the matter, Gupta said more than 20 countries are sending their delegations to explore logistics partnerships with India in this function.

He said the organization is focused on logistics solutions for “hard to reach markets” and more than 100 international delegates are expected at Logix India.

Since 2011-12, Indian exports have hovered around $ 300 billion. During the period 2017-18, shipments reached 303 billion USD.

Export promotion helps a country create jobs, boost manufacturing, and earn more foreign exchange.

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