Despite COVID-19 and other issues, we are ahead of export target: Minister of Commerce

Ministry of Commerce and Industry

Despite COVID-19 and other issues, we are ahead of export target: Minister of Commerce

Union Minister Piyush Goyal interacts with bankers and exporters on export finance issues, urges them to aim high and think long term

We could reach $ 190 billion or more by the end of September: Minister of Commerce


Posted on: 23 SEP 2021 21:03 by PIB Mumbai

Mumbai, September 23, 2021

“With the support of our exporters, we were able to set an ambitious target. To date, we are ahead of the export target despite COVID-19. We will be around $ 190 billion by the end of September 2021. . This is for the first time; India breaks this number in first six months of the fiscal year. Exports on the cusp of exponential growth. Government strives to leap forward in terms of quality, productivity and efficiency, in order to make our export basket bigger, better & wider. ” Union Trade and Industry Minister Shri Piyush Goyal said this during an interaction with exporters and industry in Mumbai today. The event was organized as part of “Vanijya Saptah” organized by the Ministry of Commerce in light of the celebrations of Azadi Ka Amrit Mahotsav.

The event was jointly organized by the Department of Commerce, the General Directorate of Foreign Trade, the Indian Export Credit Guarantee Corporation and the Export and Import Bank of India. The interaction focused on issues related to export financing, in particular the financing of project exports.

Speaking about the role banks play in supporting exporters, he suggested that banks should be liberal when it comes to exchange rates. “Banks should actually profit rather than penalize MSMEs,” he added. He also urged the Indian Bankers Association to take a more liberal approach, when it comes to credit scoring, penal interest and penal insurance costs, given the difficulties faced due to COVID-19.

Shri Goyal also advised exporters to form small working groups and deliberate on basic structural improvements in order to free themselves from the clutches of government support. He also shared the story of the success of LED bulbs in the country as a result of removing subsidies while increasing scale and giving manufacturers the freedom to operate.

State Bank of India, EXIM Bank, ECGC made presentations on the various measures taken to promote exports in the country. The SBI, in its presentation, briefed on export finance provided by banks and said the liquidity shortage will never prevent India from meeting its $ 400 billion merchandise export target for 2021-2022.

Shri Goyal advised exporters to borrow more in foreign currency. “Why don’t you start borrowing more in foreign currencies? SBI even said that if a small bank does not have foreign currencies to offer credit, SBI is willing to lend them foreign currencies,” he said. He underlines.

In response to the questions and concerns raised by exporters during the event, the Minister advised officials from the Ministry of Commerce to deliberate and find a solution to any issues raised by the export community and stakeholders. “We will carefully consider all points submitted by exporters and prepare reports on action taken in this regard,” he promised.

Shri Goyal also said that, in the interest of exporters, he will hold talks with the Reserve Bank of India regarding the mandatory foreign currency conversion. “We can reconsider this especially if the exporter has to make import payments; RBI has brought this condition because there are many waiting to play the market,” he added. “On the issue of trading commercial transactions, the latest RBI guidelines provide that such transactions are permitted for goods authorized for export or import in accordance with the foreign trade policy in force; RBI does not impose any restrictions or product limits in such cases, traders are required to be genuine merchants of goods and not mere financial intermediaries, ”he informed exporters of the RBI guidelines.

During the interaction, the Indian Engineering Export Promotion Council briefed the Minister on the export finance issues and challenges facing exporters.

Chairman and Managing Director, India Trade Promotion Organization, Shri LC Goyal, Executive Director, ITPO, Shri Vibhu Nayar, Managing Director, EXIM Bank, Ms. Harsha Bangari, Chairman and Managing Director, ECGC, Shri M Senthilnathan, also spoke at during the event.

The Minister’s speech at the event can be viewed in the link below

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GDP MUMBAI /DL / PM

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Disclaimer

Ministry of Commerce and Industry of the Republic of India published this content on September 23, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 23, 2021 04:51:02 PM UTC.

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