Export Credit extended!
Export Credit extended by Scheduled Commercial Banks has continued to reflect a steady increase. As per data compiled by the Reserve Bank of India (RBI), the Export Credit – Balance Outstanding in respect of all Scheduled Commercial Banks at the end of financial year 2016-17 & 2017-18 stood at Rs. 2,43,505 Crore and Rs. 2,43,890 Crore respectively.
It declined marginally by 0.56% to Rs. 2,42,523 Crore in the First Quarter of Current Financial Year before registering an increase of 4.59% to Rs. 2,53,676 Crore in Second Quarter ending Sept. 30th, 2018.
Federation of Indian Export Organisation (FIEO) has urged the Government to increase the flow of credit to Micro, Small & Medium Enterprise (MSME) exporters. Government has taken various steps in this regard. These, inter-alia, include raising interest equalization rate under Interest Equalisation Scheme (IES) from 3% to 5% for MSME exports.
That including Merchant exporters under IES for Pre and Post Shipment Rupee Export Credit; facilitating export under GST by permitting Letter of Undertaking in place of bond with no bank guarantee for exporting goods or service or both; allowing Merchant exporters to procure goods, from domestic suppliers, for export, with nominal GST of 0.1%; Provisional sanction of 90% refund amount within 7 days in case of exports etc.