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Ease norms to help SMEs, exports: Commerce Ministry to RBI
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SME Times News Bureau | 10 Jul, 2013
To encourage shipments from the country, the Commerce Ministry has
suggested the Reserve Bank of India (RBI) to liberalise packing credit
scheme for exporters and has urged the apex bank to ensure that small
and medium enterprises (SMEs) have access to foreign currency loans from
banks for exports, reports media.
In a letter to RBI Governor D
Subbarao, Commerce Secretary S R Rao said, "We would ... request that
RBI's special export credit refinance to support PCFC (packing credit in
foreign currency) (and it) may be enhanced from 50 percent to 100
percent."
The scheme, he said, should be liberalised "to the
maximum extent possible through greater refinance margins. It should
enhance the overall quantum of refinance available and bring in long
term stability to this policy, so as to encourage better export finance
planning by both the exporters and concerned banks."
He further
said the RBI's special refinance window for PCFC by way of US
Dollar-Rupee swap facility has been extremely well received by the
exporters and commercial banks.
The SME sector is also needed to
be encouraged, Rao said, urging the apex bank to ensure the sector has
access to foreign currency loans for exports from Indian banks at a
ceiling of LIBOR plus 200 bps.
India's trade deficit widened to
USD 20.1 billion in May due to high gold imports while exports declined
by over a percent, raising concerns about economic recovery. The deficit
gap was at USD 16.9 billion in May last year.
According to
latest information, gold imports plunged by over 80 percent in June as
government measures including a hike in customs duty tapered demand.
The
current account deficit narrowed down to 3.6 percent of GDP in the
January-March quarter but totaled a record 4.8 percent for the full
2012-13 fiscal.
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Ease norms to help SMEs, exports: Commerce Ministry to RBI
Dr. H. JOSHI. | Wed Jul 10 09:24:02 2013
Too little too late.
The minister should also send a note to all government bureaucracies not to harass the people that are exporting and earning foreign exchange.
Then if he has time and energy, should also work on the systemic nightmare built into the apparatus and start to create a an homogeneous environment of educated and ethical people that will innovate, build and sell quality products at competitive prices THAT THE INDIANS AND THE WORLD WILL BUY.
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| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
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â¹84.00
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â¹82.25 |
UK Pound
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â¹104.65
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â¹108.10 |
Euro
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â¹92.50
|
â¹89.35 |
| Japanese
Yen |
â¹56.10 |
â¹54.40 |
| As on 25 Jul, 2025 |
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