Exporters to get forex credit at affordable rates

New Delhi: Expressing concerns over fall in export credit, Commerce and Industry Minister Piyush Goyal on Thursday said the government will soon come out with guidelines on extending foreign exchange credit to exporters at affordable rates.

"We are concerned that it (export credit) has fallen, and will come up with the contours of a vibrant programme (to address the issue) soon, which will particularly support micro, small and medium enterprises," Goyal said while addressing the meeting of the Board of Trade here.

The programme, more importantly, will make foreign exchange credit available to exporters at competitive rates, he said, adding that the rates were likely to be in the sub-four percent category. He said the ministry was waiting for Finance Minister Nirmala Sitharaman to take a call on some of the issues on export credit.

The bankers are on board and "...we shall shortly be coming out with the contours that have been finalised between the Reserve Bank of India (RBI), the finance ministry and the commerce ministry," he added. Export credit disbursement declined 23 percent in 2018-19 to Rs 9.57 lakh crore from Rs 12.39 lakh crore in 2017-18. He also said the ministry would notify new anti-dumping rules this month.

Further, the minister urged states to send representatives to the Board of Trade meetings. The level of participation of states and ministries will determine the cooperation that "we will give" them, he said. "If both the senior officials and state ministers are not there, it is a matter of serious concern. I may have to talk to the respective chief ministers," he said.

He added that if the ministers of states are busy and don't find time to come for these meetings without due cause known to us in advance, "then if states have any problems, I may find myself busy to respond to those states. I hope the message will go to those states who, for the second time, have not attended this meeting," he added.

Similarly, for central ministries, which have a stake in exports, "I will take it seriously if they are not able to come, unless they give a reason well in advance," Goyal reiterated. Goyal also said that although total exports crossed half-a-trillion-dollar mark at $537 billion in 2018-19, India will have to achieve $1 trillion of exports in the next five years. (PTI)