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.
š„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.
š„”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,ā Sahai added.
š„FIEO President Ashwani Kumar highlighted another concern for exportersāthe rising cost of transportation due to ongoing disruptions in the Red Sea.
š„These issues, he noted, are compounding existing financial challenges for exporters and further reinforce the need for the government’s intervention.
š„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.
š„Noel Hillman, Stennās 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.”
š„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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