RBI should consider increasing import cap of committed exporters, says industry body
Updated: May 23, 2014 03:05:09pm
New Delhi, May 23 (KNN) RBI could consider incentivizing those exporters who show a larger commitment to exports as against the stipulated 20 per cent by allowing a commensurate increase in the import cap assigned to them, an exporters body has said.
“The announcement of allowing STH /PTH also reflects that resolve of the new Government towards free market economics as against a canalized/restricted regime in order to propel business both within the country and outside. RBI’s announcement to allow long term export advances may help project and turnkey export sector,” President, Federation of Indian Export Organisations (FIEO), M Rafeeque Ahmed said today.
Ahmed further stated, given that India is a major consumption centre, gold futures have seen a jump following the announcement. The announcement of allowing STH /PTH also reflects the resolve of the new Government towards free market economics as against a canalized/restricted regime in order to propel business both within the country and outside.
FIEO chief added that allowing exporters to receive long term export advances up to a maximum tenor of 10 years to be utilized for execution of long term supply contracts for export of goods would be particularly useful to those exporters who are into turnkey projects/ off shore prospecting etc . Such projects require both service and capital exports over a longer period of time/extended gestation period as could also be required for infrastructure projects being implemented by State agencies like IRCON, RITES, and WAPCOS.
With a view to easing earlier rules that only allowed loans of up to one year to the exporters, RBI on Wednesday said exporters with a "satisfactory" track record of three years can now get long-term loans from banks for up to 10 years to service export contracts.
RBI had also eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports. (KNN/SD)
“The announcement of allowing STH /PTH also reflects that resolve of the new Government towards free market economics as against a canalized/restricted regime in order to propel business both within the country and outside. RBI’s announcement to allow long term export advances may help project and turnkey export sector,” President, Federation of Indian Export Organisations (FIEO), M Rafeeque Ahmed said today.
Ahmed further stated, given that India is a major consumption centre, gold futures have seen a jump following the announcement. The announcement of allowing STH /PTH also reflects the resolve of the new Government towards free market economics as against a canalized/restricted regime in order to propel business both within the country and outside.
FIEO chief added that allowing exporters to receive long term export advances up to a maximum tenor of 10 years to be utilized for execution of long term supply contracts for export of goods would be particularly useful to those exporters who are into turnkey projects/ off shore prospecting etc . Such projects require both service and capital exports over a longer period of time/extended gestation period as could also be required for infrastructure projects being implemented by State agencies like IRCON, RITES, and WAPCOS.
With a view to easing earlier rules that only allowed loans of up to one year to the exporters, RBI on Wednesday said exporters with a "satisfactory" track record of three years can now get long-term loans from banks for up to 10 years to service export contracts.
RBI had also eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports. (KNN/SD)
Loading...
