Piyush Goyal meets bankers on export credit to MSME Exporters; aims to achieve $1 trn merchandise Exports

NEW DELHI: Minister of Commerce and Industry Shri Piyush Goyal urged Indian banks to provide MSMEs with improved and inexpensiveloansinordertomeetthe aim of 1 trillion dollars in product exports.

“Piyush Goyal has asked the Indianbankstoensureenhancedand affordable credit to MSMEs to achieve the target of 1 trillion dollar merchandise exports,” read the Ministry of Commerce & Industry pressrelease.

According to the official statement,themeetingwasconvened by the Department of Commerce in coordination with Export Credit Guarantee Corporation Limited, (ECGC)inNewDelhi.

The meeting was attended by the top officials of 21 banks which includedtheStateBankofIndia,Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India,

Bank of India and Central Bank of India,saidtheofficialstatement.

A presentation on ‘Export Credit and Export Credit Insurance for Banks(ECIB)‘waspreparedbyCMD ECGC,MSenthilnathan,itadded.

According to the official statement, ECGC has now proposed additional improvements to provide adequate and affordable financing to a larger variety of MSME exporters based on its experience with the extendedcoverageplan.

“Based on ECGC’s experience under the scheme of enhanced cover, ECGC has now proposed further modifications to make available adequate and affordable credit to a larger section of MSME exporters, thestatementsaid.

The product facilitates the borrower accounts to be treated equivalent to ‘AA-rated accounts with reduced cost of export credit to the exporters,itfurtheradded.

The Commerce and Industry Minister also mentioned at the meetingthattheECGCmightlookinto expanding the programme that was proposedforninebankstoallbanksin order to improve the export credit offtakeforMSMEExporters,itsaid.

The Commerce and Industry Minister also recommended ECGC follow a pattern on similar lines to compensate for their loss for the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and bankers suggested that ECGC implement a claim processingtechniquesimilartothat.

The Union Minister advised the banks to take advantage of the proposed scheme and extend adequateandaffordableexportcredit to MSME exporters. This would enable the country to achieve its target of USD 1 trillion in merchandiseexportsby2030,saidthe statement.