Piyush Goyal on key to India's export growth: 'Timely availability of cheaper credit to exporters'

Piyush Goyal, Union Minister of Commerce and Industry & Railways, on Friday said that timely and efficient availability of export credit is critical for any trade activity and is one of the key drivers to boost the growth of export from the country. Goyal said this in his opening address at a meeting in New Delhi to address issues related to export credit. The commerce minister said that the time has come when India should move away from subsidies to the easy availability of cheaper credit to exporters.

According to Goyal, the share of export credit has come down and this is a cause of concern, especially for the MSME sector that suffers due to the demand for collateral from lending institutions. Goyal said that stakeholders have been called to address this significant challenge and to redress the situation based on the inputs given by participating organizations and institutions.

To alleviate the burden on exporters and to make Indian exports competitive and on par with global best practices, Goyal said, "We have to first develop a framework with a stable policy that is internationally acceptable, consistent and robust and then look for solutions within that framework based on trust, integrity and due diligence. Greater transparency has to be brought into the work being done by Government organizations, export promotion councils and financial institutions."

The commerce minister said transparency will ensure that genuine competitive advantages of India’s exports may be harnessed. The Minister hoped that outcomes of today’s meeting with all stakeholders will not only provide a vision for the export sector but also give a road map for implementation and action by Government departments and financial institutions. 

Goyal also hoped that export credit would triple in the next five years and allow India to be on par with the rest of the world where credit is cheaper and interest rates are lower.