Interviews
Assess sector wise export credit needs - FIEO
13 Jul '10
2 min read
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on RBI latest data on credit off-take stated that while the trend was robust 19.6% vis-à-vis 15.7% last year and close to the targeted 20% as per the monetary policy much of it is focused towards infrastructure, auto and auto ancilliaries.
FIEO Chief remarked that considering the global slowdown and the faltering growth in the US as per the IMF release, it would be prudent to assess export credit requirements, growth, and set separate targets which can be monitored periodically so as to ensure that the sector is buoyant enough to sustain itself.
As of now no data is readily available on credit off-take with regard to exports with RBI which would be crucial information since markets are shrinking and buyers defaulting due to high rate of insolvencies and are as such protected by the laws of their land by simply declaring themselves insolvent unilaterally absolving them of all liabilities at their end while leaving the exporter “high and dry” with insurance claims, if any, to fall back upon. This issue needs to be addressed at the highest level by the Ministry of Commerce, Government of India with their trading partners.
FIEO Chief remarked that considering the global slowdown and the faltering growth in the US as per the IMF release, it would be prudent to assess export credit requirements, growth, and set separate targets which can be monitored periodically so as to ensure that the sector is buoyant enough to sustain itself.
As of now no data is readily available on credit off-take with regard to exports with RBI which would be crucial information since markets are shrinking and buyers defaulting due to high rate of insolvencies and are as such protected by the laws of their land by simply declaring themselves insolvent unilaterally absolving them of all liabilities at their end while leaving the exporter “high and dry” with insurance claims, if any, to fall back upon. This issue needs to be addressed at the highest level by the Ministry of Commerce, Government of India with their trading partners.
Federation of Indian Export Organisations (FIEO)
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