RBI, Govt need to ensure timely, affordable bank credit for exporters: EEPC

In order to boost outbound shipments, the Engineering Exports Promotion Council (EEPC) India has said that the Reserve Bank of India (RBI) and the government need to ensure timely and affordable bank credit for exporters. The industry body also pointed towards falling bank credit deployment.

The EEPC said ‘Against a gross credit deployment of Rs 434 billion (Rs 43,400 crore) till October-end 2017, the figure dropped 54.6 percent year-on-year to Rs 197 billion (Rs 19,700 crore) in 2018.’ Further, EEPC India Chairman Ravi Sehgal underlined subdued flow of credit seen in the engineering segment. He expressed need to address the situation sooner than later, terming credit as the lifeline of the industry and exporters.

Besides, Sehgal noted that while several global factors such as trade war between the US and China and uncertainties over Brexit are hitting the export demand, the cost of credit remains a big concern for exporters. He also said that exporters are facing many problems in the wake of RBI's instructions to banks to not to honour shipping bills older than two years under the Export Data Processing and Monitoring System.