Key Points
The government is looking at ways to improve the competitiveness of exports amid mounting geopolitical tensions and has begun examining the export credit landscape..
The commerce and industry ministry has sought details on exporters' financial needs, challenges faced in accessing export credit and the ways to improve it..
India gives pre- and post-shipment export credit to enable exporters to access financial resources that are crucial for facilitating international trade...
"There is almost a 5% difference between the cost of export credit in India and countries like China, Vietnam and South Korea, which impacts the competitiveness of our exports," said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO)...
Seeking an extension of the interest subvention scheme, FIEO president Ashwani Kumar said the scheme is relevant more today as buyers are asking for longer period of credit with a slowdown in demand and offtake from the shelves, whereas exporters are also looking for larger credit due to huge hike in sea and air freight..
