FIEO wants govt to prioritise export credit, address logistic challenges at Board of Trade meeting

The Federation of Indian Export Organisations (FIEO) has appealed to Union commerce ministry to engage with the Reserve Bank of India and the banking sector to restore export credit as a strategic priority, ensure adequate and timely availability of export finance at internationally competitive interest rates and encourage banks to adopt a more facilitative approach towards exporters.

Expressing their views at the Board of Trade meeting chaired by Union commerce minister Piyush Goyal in New Delhi today, FIEO said a vibrant and responsive export credit ecosystem will be indispensable for achieving India's ambitious target of becoming a $2 trillion export economy.

The apex body of Indian exporters’ associations pointed out that priority sector lending (PSL) for export credit has witnessed a significant decline, with export credit contracting by nearly 14% in the recent period. This has created serious liquidity constraints, particularly for MSME exporters who constitute the backbone of India's export sector, FIEO noted. Inadequate availability of pre-shipment and post-shipment credit directly impacts their ability to execute export orders, diversify into new markets and remain globally competitive, the organisation pointed out.

FIEO also wanted the government to address the logistics challenges Impacting India's export competitiveness. “We request the government to accord high priority to this issue by engaging with the Ministry of Ports, Shipping & Waterways, the Directorate General of Shipping and other stakeholders to evolve a framework that ensures greater transparency and reasonableness in freight-related charges, improves container and vessel availability for Indian export cargo, and facilitates regular dialogue between exporters and shipping lines”, FIEO said. The organisation recommended an institutional mechanism for continuous monitoring of freight and logistics issues to enable timely interventions during periods of market disruptions.

Noting that global trade is undergoing a structural transformation as sustainability increasingly becomes a prerequisite for market access, FIEO wanted the government to establish an apex green transition fund dedicated to supporting exporters in adopting cleaner technologies, improving energy efficiency and reducing carbon intensity.

The organisation also wanted to government to operationalise the GST refund scheme through a simple, technology-enabled mechanism at major international airports to enhance India's attractiveness as a global shopping destination, increase sales of Indian-made products, generate higher foreign exchange earnings, create employment across manufacturing, handicrafts and retail sectors, and effectively promote "exports without logistics costs."