In an effort to enhance the competitiveness of exports amidst increasing geopolitical pressures, the government has initiated a thorough examination of the export credit landscape. The commerce and industry ministry has taken proactive steps by gathering insights into exporters’ financial requirements and the challenges they face in accessing export credit.
Export credit plays a vital role in providing exporters with essential financial resources for engaging in international trade. The ministry’s objective is to identify and address the bottlenecks in the existing export credit mechanisms and incorporate best practices from other countries to enhance India’s export credit landscape.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), highlighted the cost differential in export credit between India and countries like China, Vietnam, and South Korea, affecting the competitiveness of Indian exports. With global uncertainties impacting demand, exporters are seeking prolonged financial support, making the need for improved access to export credit more crucial than ever.
