New Delhi, Dec 7 (KNN) Exporter’s body, Federation of Indian Exports Organization (FIEO) said that the challenges being faced by exporters, mostly Micro Small and Medium Enterprises (MSMEs) due to bank credit issue needs to be resolved urgently to register the double digit growth rate in exports.

President of FIEO, Ganesh Kumar Gupta said that PSU Banks officials including MDs, EDs, GMs, AGMs are not accessible to exporters particularly from the MSME sector.

This has tightened the hands of these exporters to take orders. As they are not able to discuss issues and challenges with regard to availability and cost of credit to the exports sector, he added.

Gupta said “Commerce Minister, Suresh Prabhu, who is taking several steps to promote exports would not fructify if banks would not lend to exporters smoothly and at affordable rates.”

While government is pushing digital India initiative and paperless transactions, these banks demand bundles of documents, collateral and other papers for considering our applications for smaller limit (Rs one to five crores) of loan, FIEO, president pointed.

He said that it takes months and months to get these limits approved and in the mean time we lose our orders. The issue needs urgent attention of the government.

Further, he added that the similar problems are being faced with regard to insurance body ECGC, which shows reluctance to extend insurance cover to exporters.

Urging Commerce Minister to look the matter on urgent basis as they reject claims on very filmy grounds, Gupta said “If banks and ECGC continue to behave like this, we would not be able to register double digit growth rate in exports.”

The matters which should be the focus of the government to push exports, he said includes enhancement of duty drawback rates, inclusion of more products like fabrics under export promotion scheme MEIS and extension of the interest equalisation scheme to merchant exporters.

Besides, to promote exports of GI products, government should join hands with FIEO to set up big stores at airports also. 

GST refunds at airports should start immediately, FIEO suggested saying that aforementioned measures would help in reaching USD 350 billion exports and recording substantial growth rates.