Banks should be more liberal on issues like exchange rates to help exporters: Piyush Goyal
The minister said at present, India is ahead of the $400 billion export target for the 2021-22 fiscal, saying the first half till end-September will witness earnings of $190 billion.
September 23, 2021 / 10:20 PM IST
Piyush Goyal | PC-MoneyControl
Union Commerce Minister Piyush Goyal on Thursday asked bankers to be "more liberal" on aspects like exchange rates while serving the exporters segment. He also sought a similar liberal outlook on the issue of penal interest rates and insistence on ratings while granting a loan, saying payments from overseas markets have been impacted because of the pandemic.
The minister, however, added that lenders and industry lobby the Indian Banks Association will have to take a call on it. "In aspects such as exchange rates, I think banks need to be a little more liberal. They can give a benefit of 2 paise," Goyal said while addressing an interactive event hosted by EXIM Bank here.
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The minister said at present, India is ahead of the $400 billion export target for the 2021-22 fiscal, saying the first half till end-September will witness earnings of $190 billion. Usually, about 40 per cent of a year's exports are done in the first half, he said, adding that as of September 21, the receipts stood at $185 billion.
He commended the industry for achieving the growth despite headwinds like the second wave of COVID-19, commodity price spikes and shipping industry troubles. The also minister asked the exporters to form small working groups to address certain structural impediments that are being faced, and offered all help from the government in tackling those.
On certain demands from the gems and jewellery sector for collateral-free credit, Goyal said past events like the fleeing of diamantaires Mehul Choksi and Nirav Modi make such expectations untenable.