Exports At The Cusp Of Exponential Growth, Says Piyush Goyal

Piyush Goyal suggested that the banks need to be liberal as regards to exchange rates.

New Delhi: Commerce and Industry Minister Piyush Goyal on Thursday said that the country’s exports are at the cusp of exponential growth. “With the support of our exporters, we have been able to set an ambitious target. As of today, we are ahead of export target despite COVID-19. We will be at about $190 billion by the end of September 2021. This is for the first time; India is crossing this figure in the first six months of the financial year 2021-22 (FY22),” Mr Goyal stated during an interaction with exporters and industry in Mumbai.

Commenting on the role banks play while supporting exporters, he suggested that the lenders need to be liberal as regards to exchange rates. “Banks should in fact give benefit rather than penalise MSMEs,” he said. He also urged Indian Bankers’ Association (IBA) to take a more liberal approach, with regard to credit rating, penal interest and penal insurance charge, in view of difficulties faced due to COVID.

Mr Goyal advised exporters to borrow more in foreign currency. “Why don’t you start borrowing more in foreign currency? SBI (State Bank of India) has even said that if a small bank does not have foreign exchange to offer credit, SBI is willing to lend them foreign exchange,” he pointed out.

The Minister also advised Commerce Ministry officials to deliberate and find solution to problems raised by the export community and the stakeholders.

Goyal further said that for the benefit of the exporters he will talk to the Reserve Bank of India (RBI) regarding mandatory conversion of foreign exchange. 
“We can reconsider this especially if exporter needs to make import payments; RBI has brought this condition since there are many who are waiting to play the market,” he added.

On RBI guidelines for exporters, Mr Goyal said, “On the issue of Merchanting Trade Transactions, the latest central bank guidelines provide that such transactions are allowed for goods permitted for exports or imports as per prevailing Foreign Trade Policy; RBI does not place any product-wise restriction or limit in such cases, merchanting traders are required to be genuine traders of goods and not merely financial intermediaries.”

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