Govt to release norms for forex credit to exporters at affordable rates

Commerce and Industry Minister Piyush Goyal said that the ministry was waiting for Finance Minister Nirmala Sitharaman to take a call on some of the issues on export credit

Expressing concerns over fall in export credit, Commerce and Industry Minister Piyush Goyal on Thursday said the government will soon come out with guidelines on extending foreign exchange credit to exporters at affordable rates.

"We are concerned that it (export credit) has fallen, and will come up with the contours of a vibrant programme (to address the issue) soon, which will particularly support micro, small and medium enterprises," Goyal said while addressing the meeting of the Board of Trade.

The programme, more importantly, will make foreign exchange credit available to exporters at very competitive rates, he said, adding that the rates were likely to be in the sub-four per cent category.

He said that the ministry was waiting for Finance Minister Nirmala Sitharaman to take a call on some of the issues on export credit.

The bankers are on board and "... we shall shortly be coming out with the contours that have been finalised between the Reserve Bank of India (RBI), the finance ministry and the commerce ministry," he added.

Export credit disbursement has declined by 23 per cent in 2018-19 to Rs 9.57 trillion from Rs 12.39 trillion in 2017-18.

He also said that the ministry would notify new anti-dumping rules this month.

Further, the minister urged states to send representatives to the Board of Trade meetings.

The level of participation of states and ministries will determine the cooperation that "we will give" them, he said.

"If both the senior officials and state ministers are not there, it is a matter of serious concern. I may have to talk to the respective chief ministers, he said.

He added that if the ministers of states were very busy and don't find time to come for these meetings without due cause known to us in advance, "then if states have any problems, I may find myself very busy to respond to those states."

"I hope the message will go those states who, for the second time, have not attended this meeting," he added.

Similarly, for central ministries, which have a stake in exports, "I will take it very seriously if they are not able to come, unless they give a reason well in advance" Goyal reiterated.