New Delhi, The Federation of Indian Export Organisations (FIEO) has called on the Over time, it was expanded: in the subsidy was increased to 5 per cent for MSMEs, and merchant exporters were brought under its ambit.
🔥The scheme has since played a vital role in ensuring competitiveness for Indian exporters, who face a significantly higher credit cost compared to countries like Japan, China, South Korea, and Singapore.
🔥”Given India’s bank rate of 6.5 per cent, local credit costs are 5-6 per cent higher than major export-oriented nations. This disparity poses a challenge for our exporters to compete globally,” Sahai added.
🔥FIEO President Ashwani Kumar highlighted another concern for exporters—the rising cost of transportation due to ongoing disruptions in the Red Sea.
🔥These issues, he noted, are compounding existing financial challenges for exporters and further reinforce the need for the government’s intervention.
🔥In a bid to support small and medium-sized enterprises (SMEs) engaged in international trade, FIEO also signed a collaboration agreement with trade finance firm Stenn.
🔥Noel Hillman, Stenn’s Chief Commercial Officer, remarked, “Our partnership with FIEO is a commitment to help Indian exporters grow globally. By offering flexible financing solutions and mitigating payment risks, we aim to enable SMEs to scale faster and compete with larger players.”
🔥The export body remains hopeful that the government will announce the extension of the scheme, ensuring stability for India’s export sector amidst global uncertainties.
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