TIL Desk/Business/New Delhi/ Commerce Minister Suresh Prabhu on Tuesday said he has taken up the issue of the credit crunch facing exporters with the Finance Ministry along with the request to ensure adequate availability of funds to them. Data from various sources indicate a decline in export credit growth in recent months. According to one estimate, outstanding export credit on March 31 this year stood at Rs 28,300 crore, which came down to Rs 22,300 crore as on June 22.
“One of the main challenges for export is finance. There is a decline in export finance, so we have taken up the issue with the Finance Ministry. I think, the Finance Minister is also looking into how we can improve the credit flow into the export sector,” Prabhu told reporters at an event here to announce “Logix India 2019” global logistics meet to be held in January next year.
The Federation of Indian Export Organisations has repeatedly called for increasing credit flow to the export sector so as not to hurt the growth of exports. The credit squeeze being felt by exporters is a part of the overall liquidity crunch in the economy that is also affecting industrial growth and which sparked off the recent tiff between the government and the Reserve Bank of India (RBI).
