Finance key to boost India's export and import :RBI

February 04, 2015 11:33 AM

CHANDIGARH: Laying emphasis on maintaining the growth of manufacturing sector, Rashmi Fauzdar, Regional Director, Reserve Bank of India said that financing is key to boost India’s export and import.Fauzdar was speaking during the conference on “Financing India’s Global Trade”, organized by PHD Chamber of Commerce and Industry in association with Export-Import Bank of India, here today.

Alok B. Shriram, President, PHD Chamber of Commerce & Industry, in his opening remarks said, “India’s share in the international trade has been growing over the years. With total exports of around US$313bn and 1.7% share in world exports is ranked at the 19th position amongst the World’s top 20 leading exporters up from 26th rank in 2007.” This is an encouraging trend for the future years, he added.

The Banking sector plays a crucial role in facilitating international trade by providing financial solutions to corporate and MSMEs at various stages of the International trade cycle, said Shriram, through a wide range of products and services, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment playing a proactive role of facilitator, consultant and promoter.

With the MSME sector dominating the industrial landscape of India at about 44 million units providing employment to some 80 million people and contributing 45% of manufacturing output and over 40% of India’s aggregate exports, it is important to focus invariably on boosting and sustaining the growth and development of this segment, said Vikram Sahgal, Chairman, Chandigarh Committee, PHD Chamber.

Terming the exports as important component of economy, N Shankar, Executive Director, Export Import Bank of India said, “The growth in exports has been very encouraging. There has been export direction shift from US and developed countries towards developing countries as well.”

Petroleum, Gold and Technology are the 3 important things which drain our Forex. But for the non-oil and non- gold exports, the trade gap drops drastically, he added.

PHD Chamber, shared Sanjiv Gupta, Chairman, Banking Committee, PHD Chamber of Commerce and Industry has suggested that export credit should be brought under the ambit of priority sector lending and framing a suitable interest subvention policy for long term export credit would provide cost effective credit to boost exports.

Cost effective finance is one of the major contributor to competitiveness at international trade. The high cost of capital and business makes MSME players risk-averse and affect their ability to build innovative technologies, which in turns makes Indian firms especially MSME less competitive at international trade thereby inhibiting full realization of India’s export potential. It is, therefore, important to address issues which enhance its manufacturing and technical capabilities, thereby making MSMEs a good springboard for boosting India’s export prospects, added Gupta.

Financing, adequate, timely & cost effective remains the critical success factor to achieve this mission, said Dalip Sharma, Director, PHD Chamber during the conference.Sharing the MSME perspective, Raman Saluja, Managing Director, Oriental Engg.Works Pvt.Ltd said, “The major problems for the MSMEs relate to the availability and cost of credit, marketing support, improving productivity, technology/skill upgradation, infrastructure and the institutional framework for the MSMEs.”

Atul Gautam, Chief General Manager, Oriental Bank of Commerce, S K Thakkar, Field General Manager, Delhi, Syndicate Bank also spoke on the occasion. They insisted on the cash flow management, adhoc credit arrangement in the wake of seasonal requirements, being transparent with the banks about these requirements, sharing and discussing the repayment problems with the banks for restructuring and any additional requirements as key to healthy loan accounts.

Daya Chandrahas, General Manager, EXIM Bank talked about the various export financing solutions with the bank.

Caption: L-R: Daya Chandrahas, General Manager, EXIM Bank of India, Vikram Sahgal, Chairman, Chandigarh COmmittee, PHD Chamber, Alok B Shriram, President, PHD Chamber, Rashmi Fauzdar, Regional Director, Reserve Bank of India, N Shankar, Executive Director, EXIM Bank of India, Sanjeev Gupta, Chairman, Banking Committee, PHD Chamber, and Dalip Sharma, Director, PHD Chamber during the conference on "Financing India's Global Trade" organised by PHD Chamber of Commerce and Industry in association with Export Import Bank of India at PHD House, here today.

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