The dwindling bank credit available to exporters is becoming a major concern, with industry representatives planning to raise the issue during a meeting with Commerce and Industry Minister Piyush Goyal on September 11.
While export figures showed a promising 15% increase over the past three fiscal years, the outstanding credit amount saw a 5% decline from March 2022 to March 2024, according to data from the Federation of Indian Export Organisation (FIEO).
FIEO Director General Ajay Sahai emphasized the urgent need for regulatory intervention, suggesting that the Reserve Bank of India should consider a sub-target for export credit within the priority sector lending framework. The declining credit facilities are impacting export growth despite the sector’s significant potential, he added.