Commerce and Industry Minister says ECGC's role is very crucial in the trying times in sustaining the flow of exports- (Press Information Bureau) (08 Nov 2016)
MANU/PIBU/0856/2016
Commercial
Commerce and Industry Minister Smt. Nirmala Sitharaman has said that ECGC's role is very crucial in the trying times in sustaining the flow of exports. Addressing the diamond jubilee celebrations of ECGC in New Delhi today she said Commencement of diamond jubilee year of ECGC is indeed a memorable occasion in the development of exports from India. The Minister said It is of interest to note that around 90% of world merchandise trade and services involve credit, guarantee or insurance. She said more than 90% of India's merchandise exports are made on short term credit i.e. less than 360 days. Engineering goods, Chemicals, Drugs and Pharmaceuticals, Textiles, Garments, Gem, Jewellery, Diamonds, leather products, carpets, sea foods and electronic goods account for a substantial share of exports.
Smt. Sitharaman said that SMEs contribute a major chunk of our exporters who receive the support from ECGC. She said there are some important considerations and issues to which all of us will have to apply our mind to .She said the developed countries account for a lion's share of our export market. As in the past, ECGC's role is very crucial in the trying times in sustaining the flow of export to our traditional markets like USA, UK and EU. She said more than five decades of experience of ECGC in insuring and maintaining credit lines on lakhs of buyers in developed markets will be very vital in sustaining the flow of India's exports.
The Minister said ECGC's role is very vital in handholding exporters in these trying times because exports have seen a continuous decline over several months. The Minister said that we have to look for newer markets which maybe in Africa or in Latin America and it is for ECGC to stand by the exporters to assure them that they are not going to face any risk. She said estimates by ADB (Asian Development Bank) Institute indicate that exports from India suffered due to unmet trade finance needs to the order of USD 300 bn approximately. IMF estimates suggest that globally bank intermediated trade finance support around 40% of merchandise trade. While trade finance supported merchandise trade is 56% in South Korea and 47% in China while in India it remains at 41%. She said India's exports increased in the years subsequent to the global financial crisis due to the stabilizing role played by ECGC in taking out the lending risks to exporters both at pre shipment and post shipment stage.
Tags : EXPORTS FLOW SUSTAINMENT
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