This is the right time to increase our exports – says MoS Finance Bhagwat Karad

Dr Bhagwat Karad, Union Minister of State for Finance, expressed confidence today that, with enterprises expanding following a break in the Covid 19 pandemic, India’s exports are approaching a new milestone. “Our economy is rebounding, business is rising, and this is the appropriate time to talk about increasing exports,” Dr. Karad remarked at the ‘Banking Conclave for Exports,’ jointly organised by Federation of Indian Export Organizations and Union Bank of India in Mumbai. He went on to say that the government’s export-oriented policies had created the ideal environment for export-led growth.

According to Dr. Karad, merchandise exports in the first eight months of 2021-22 totaled US$ 233 billion, up 54 percent from the previous year. Engineering goods, gems and jewellery, electronics, chemicals, and pharmaceuticals, among other areas, have led the way in terms of export growth. He reminded the exporters that the Prime Minister has urged them to become the engine of India’s economic growth. PM Modi has set a target of $400 billion in merchandise exports for the current fiscal year.

The Production Linked Incentive Scheme, which the government launched, is having a beneficial impact on increasing industry and promoting exports, according to the Minister. PLI plans span 13 major areas with strong growth potential.

Dr. Bhagwat went on to say that the Emergency Credit Line Guarantee Scheme (ECLGS) has been beneficial to a variety of industries. “To help businesses cope with the pandemic’s detrimental impacts, the government has extended the 4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) until March 31, 2022, in response to demand from industrialists.” Different banks have sanctioned Rs 2.9 lakh crore of this amount,” he noted.

The Minister promised exporters of full banking support, stating that the country’s financial situation has substantially improved with the presence of 12 public sector banks, 22 private banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks, and 96000 rural cooperative banks. He further stated that the RBI has increased the maximum for export credit classification under priority sector financing to Rs 40 crore from Rs 25 crore.

Today’s Banking Conclave in Mumbai focused on the role of banks as major export catalysts, export trade banking norms and their influence on exports, export finance and export bill discounting concerns, and so on.

Shri Khalid Khan, Vice President of the FIEO, outlined the challenges that exporters confront and requested that relevant authorities intervene. In the near future, the Union Minister promised to call a combined meeting of various export organisations, bank CEOs, and other stakeholders to settle the difficulties.