SME Times is powered by   
Search News
Just in:   • India has intrinsic stakeholder interest in helping Africa: Official  • High-level US-China trade talks to resume: Officials  • PNB stocks surge over 4% after Nirav Modi's arrest  • Sensex ends flat on high stock-specific volatility  • Industry calls for open culture for innovation 
Last updated: 19 Feb, 2019  

Rupee.9.New.Thmb.jpg Export sector concerns

Rupee.9.New.jpg
   Top Stories
» India has intrinsic stakeholder interest in helping Africa: Official
» Industry calls for open culture for innovation
» Prez, VP greet people on the eve of Holi
» 'Enhance public, private investment in disaster reduction'
» Conclave on India-Africa project partnerships concludes
Bikky Khosla | 19 Feb, 2019

A meeting of the Board of Trade (BoT) was convened by the Commerce Ministry last week in the national capital. It was attended by the Commerce Minister, top officials from several ministries, including Commerce, Finance and Agriculture and representatives of all major industry bodies, Export Promotion Councils and industrialists. In the meeting, several major concerns were raised by the exporting community, and it will be interesting to see what the Centre does to addresses challenges in the coming days.

Not surprisingly, the issue of decreasing flow of credit topped the list of concerns of the export sector representatives attending the BoT meeting. According to RBI data, export credit collapsed by 54.8% as of December 21 from a year before, and this figure clearly reflects the gravity of the situation. Also, credit to the SME sector declined to -2.1% ending March-December 2018, indicating banks' aversion to lending to the sector. To reverse this situation, the Finance Ministry must give some clear directions to our banks in this regard.

The RBI recently changed its policy stance to "neutral" from "calibrated tightening" and also cut its policy rate by 25 basis points. It is a welcome decision, but unfortunately it is equally true that such rate cuts are not always effectively transmitted by commercial banks to borrowers. According to latest media reports, the RBI Governor will meet bankers this month and urge them to transmit the benefits of the recent rate cut to borrowers. This is again a welcome move, but I think we need a permanent mechanism to put an end to this lingering issue.

Meanwhile, some other important issues also found place in the BoT meeting. They include retrospective effect of pre-import conditions, delays in refund of Input Tax Credit, withdrawal of GSP benefits by US, exports to Iran and OFAC countries, availability of incentives for exports to neighbouring countries, etc. These issues need to be urgently addressed by the government, particularly in the backdrop of slowing down of exports growth in recent months.

I invite your opinions.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 21 Mar, 2019
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter