FIEO urges new RBI Governor to ensure smooth flow of credit to exporters

Exporters body FIEO Wednesday urged new RBI Governor Shaktikanta Das to ensure smooth flow of credit to the sector as decline in the funds will hit outbound shipments.

Das, former economic affairs secretary, has assumed charge as the RBI Governor.

"We hope that the new Governor will ensure flow of credit to exports sector which is declining sharply on year on year basis, affecting the liquidity of exporters particularly the MSMEs," Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said in a statement.

The commerce ministry has yesterday stated that it is working closely with the finance ministry to take measures for ensuring adequate availability of funds to exporters.

He also said that while exchange rate is market driven, RBI's intervention is essential to stem extreme volatility in rupee as it is not beneficial for exporters or importers.

"A movement of rupee in narrow band of 5 per cent would be more appropriate for export sector as near predictability in rate would reduce the cost of hedging as well," he added.

Further, he said that the new governor will act as an effective bridge between the government and the central bank, so as to give necessary boost to economy.

The country's merchandise export's during April-October 2018-19 grew by 13.27 per cent to USD 191 billion.