IFSCA, ADB Discuss GIFT IFSC Role In Bridging Trade Finance Gap For MSMEs

Gandhinagar, Oct 7 (KNN) The International Financial Services Centres Authority (IFSCA), in collaboration with the Asian Development Bank (ADB), convened a high-level workshop at GIFT City on October 1 to discuss ways to bridge the trade finance gap faced by Indian MSME exporters.

Titled ‘Unlocking Trade Finance for MSMEs: The Role of GIFT IFSC in Viksit Bharat 2047’, the workshop brought together stakeholders from the credit guarantee, export insurance, banking and financial services ecosystem.

Participants included CGTMSE, National Credit Guarantee Trustee Company, ECGC, India Exim Bank, SIDBI, banking units operating at GIFT IFSC, trade finance platforms, factoring companies, insurers and industry associations.

Discussions highlighted the importance of affordable and timely export finance in enabling MSMEs to accept larger orders, meet working capital requirements, offer competitive payment terms and manage longer international trade cycles.

The workshop also examined the potential of factoring and International Trade Finance Services (ITFS) platforms to improve liquidity by enabling MSME exporters to convert receivables into immediate working capital.

Stakeholders further stressed the need for a stronger risk-sharing ecosystem involving credit guarantees, export insurance, risk-sharing mechanisms and blended finance to reduce risks for lenders and encourage greater private capital participation in MSME trade.

The discussions underscored the importance of coordination among financial institutions, insurers, guarantee providers and international financing institutions to expand access to trade finance for smaller exporters.

The participation of ECGC, Exim Bank, SIDBI and CGTMSE alongside financial institutions operating through GIFT IFSC reflected the need for greater collaboration across the trade finance ecosystem to strengthen the global competitiveness of Indian MSMEs.

(KNN Bureau)