FIEO urges govt to revive export credit, ease logistics bottlenecks to support India’s export growth
New Delhi, July 3 (IANS) The Federation of Indian Export Organisations (FIEO) on Friday urged the government to restore export credit as a strategic priority, address rising logistics costs, create a dedicated green transition fund for exporters, and operationalise long-pending GST refunds for foreign tourists, saying these measures are critical to sustaining India’s export growth and enhancing global competitiveness.
In its recommendations submitted during the Board of Trade (BOT) meeting held in the national capital, FIEO said India’s exports have remained resilient despite an increasingly uncertain global trade environment, but warned that institutional support has not kept pace with the sector’s requirements.
FIEO said Priority Sector Lending (PSL) for export credit has declined sharply, with export credit contracting by nearly 14 per cent in the recent period, creating serious liquidity constraints, particularly for MSME exporters.
It said exporters are facing longer payment cycles, higher logistics costs, growing compliance requirements and intense global competition, making timely access to affordable working capital more important than ever.
The exporters’ body called on the government to engage with the Reserve Bank of India and the banking sector to restore export credit as a strategic priority, ensure adequate and timely export finance at internationally competitive interest rates, and encourage banks to adopt a more facilitative approach towards exporters. It said a strong export credit ecosystem would be essential for achieving India’s target of becoming a $2 trillion export economy.
Highlighting logistics-related concerns, FIEO said exporters continue to face high ocean freight rates, shortages of containers and vessel space, and multiple non-transparent charges imposed by shipping lines and their agents, including congestion, peak season, documentation, detention and demurrage charges. It said these factors are increasing logistics costs, reducing export competitiveness and affecting delivery commitments, particularly for MSMEs.
The organisation urged the government to work with the Ministry of Ports, Shipping and Waterways, the Directorate General of Shipping and other stakeholders to ensure greater transparency in freight-related charges, improve container and vessel availability, and establish an institutional mechanism to continuously monitor freight and logistics issues for timely intervention during market disruptions.
–IANS
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