Exporters seek sector development fund

Under the proposed scheme, interest rates will likely fall to 3.15 per cent for export credit in dollar terms and 7.35 per cent in rupee.

Published: 20th December 2020 11:15 AM  |   Last Updated: 20th December 2020 11:15 AM   |  A+A-

Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman (Photo | PTI)

By Express News Service

NEW DELHI:   Exporters’ body Federation of Indian Export Organisations (FIEO) on Saturday met Finance Minister Nirmala Sitharaman and pitched for a host of measures to boost outbound shipments.

These include the setting up of a development fund; bringing in a double tax deduction scheme; extending tax deductions on product development; providing fiscal support to attract private investment in the shipping industry in order to keep freight rates under check; measures for export promotion amid rising protectionist tendencies; rolling out the proposed Export Credit Insurance Scheme (ECIS); and allocating larger funds to provide aid trade finance.

“Rising NPA s have caused decline in export credit by banks to exporters resulting in liquidity problems. To provide necessary comfort to bankers, the government may roll out the NIRVIK Scheme (also called ECIS) which was announced in September 2019 but remains non-operational so far,” said FIEO President Sharad Kumar Saraf.

Under the proposed scheme, interest rates will likely fall to 3.15 per cent for export credit in dollar terms and 7.35 per cent in rupee, according to the proposal moved to the Cabinet.

“If India’s GDP has to grow at 8 per cent, exports should grow at 15 per cent. The Department of Commerce should be given enough budget allocation to support exports, including agri exports,” the association said.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp