Exports on the verge of exponential growth, according to Piyush Goyal

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Piyush Goyal suggested that banks should be liberal when it comes to exchange rates.

New Delhi: Trade and Industry Minister Piyush Goyal said on Thursday that the country’s exports were on the cusp of exponential growth. “With the support of our exporters, we were able to set an ambitious target. To date, we are ahead of the export target despite COVID-19. We will be at around $ 190 billion by the end of September 2021. This is for the first time; India breaks through this figure in the first six months of fiscal year 2021-22 (FY22), “Goyal said during an interaction with exporters and industry in Mumbai.

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Commenting on the role that banks play while supporting exporters, he suggested that lenders should be liberal when it comes to exchange rates. “Banks should actually give benefits rather than penalize MSMEs,” he said. He also urged the Indian Bankers Association (IBA) to take a more liberal approach, when it comes to credit scoring, criminal interest and criminal insurance charges, given the difficulties faced due to COVID.

Mr. Goyal advised exporters to borrow more in foreign currency. “Why don’t you start borrowing more in foreign currency? SBI (State Bank of India) even said that if a small bank doesn’t have foreign currency to offer credit, SBI is ready to lend them foreign currency. “, he underlined. .

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The minister also advised officials of the Ministry of Commerce to deliberate and find a solution to the issues raised by the export community and stakeholders.

Goyal added that for the benefit of exporters, he will speak to the Reserve Bank of India (RBI) about the mandatory foreign currency conversion.
“We can reconsider this, especially if the exporter has to make import payments; RBI brought this condition because there are many waiting to play the market,” he added.

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Regarding the RBI guidelines for exporters, Mr. Goyal said: “On the issue of commercial transactions, the latest central bank guidelines provide that such transactions are permitted for goods authorized for export or import in accordance with the foreign trade policy in force; RBI does not place any product-wise restriction or limitation in such cases, merchant traders are required to be genuine merchants of goods and not mere financial intermediaries.

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