Govt plans enhanced export credit with 90% insurance cover
13 September 2019
Govt will soon come out with credit scheme for exporters with up to 90 per cent enhanced insurance cover against the present limit of 60 per cent, union minister of commerce and industry and railways Piyush Goyal said on Thursday.
Addressing the second meeting of the Board of Trade in New Delhi, Goyal said, there has not been much growth in exports this year due to the trade dispute between US and China and the current scenario is not satisfactory as India has a huge unused potential for exports.
The ongoing US-China trade dispute has provided a window of opportunity to Indian exporters to tap the markets in the US and China, he said, adding, “We have a trade surplus of $17 billion with USA while we have a trade deficit of $53 billion with China.”
India, he emphasised, needs to work on its strengths by exploring market access for agriculture and pharma products in different regions.
On banks’ lending limitations, Goyal said the merger of 10 PSU banks will enable them to disburse enhanced credit, raise risk appetite and raise resources from the market.
Further, he said, the government will soon be releasing Rs70,000 crore to recapitalise public sector banks (PSBs) besides releasing additional lending capacity to the tune of Rs5 lakh crore borrowers, MSMEs, small traders and exporters.
All pending GST refunds due to MSMEs will be paid within 30 days while the improved One Time Settlement scheme will benefit MSMEs and retail borrowers in settling their overdue, Goyal added.