INSUBCONTINENT EXCLUSIVE:
Piyush Goyal suggested that the banks need to be liberal as regards to exchange rates.New Delhi: Commerce and Industry Minister Piyush Goyal
on Thursday said that the country's exports are at the cusp of exponential growth
"With the support of our exporters, we have been able to set an ambitious target
As of today, we are ahead of export target despite COVID-19
We will be at about $190 billion by the end of September 2021
This is for the first time; India is crossing this figure in the first six months of the financial year 2021-22 (FY22)," Mr Goyal stated
during an interaction with exporters and industry in Mumbai.Commenting on the role banks play while supporting exporters, he suggested that
the lenders need to be liberal as regards to exchange rates
"Banks should in fact give benefit rather than penalise MSMEs," he said
He also urged Indian Bankers' Association (IBA) to take a more liberal approach, with regard to credit rating, penal interest and penal
insurance charge, in view of 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) has even said that if a small bank does not have foreign
exchange to offer credit, SBI is willing to lend them foreign exchange," he pointed out.The Minister also advised Commerce Ministry
officials to deliberate and find solution to problems raised by the export community and the stakeholders.Goyal further said that for the
benefit of the exporters he will talk to the Reserve Bank of India (RBI) regarding mandatory conversion of foreign exchange. "We can
reconsider this especially if exporter needs to make import payments; RBI has brought this condition since there are many who are waiting to
play the market," he added.On RBI guidelines for exporters, Mr Goyal said, "On the issue of Merchanting Trade Transactions, the latest
central bank guidelines provide that such transactions are allowed for goods permitted for exports or imports as per prevailing Foreign
Trade Policy; RBI does not place any product-wise restriction or limit in such cases, merchanting traders are required to be genuine traders
of goods and not merely financial intermediaries."
