Economy

Govt mulls providing forex loan at cheaper rate to exporters: Goyal

PTI New Delhi | Updated on November 20, 2019 Published on November 20, 2019

The government is considering a proposal to provide foreign exchange loan at cheaper interest rate to exporters, Commerce and Industry Minister Piyush Goyal informed Parliament on Wednesday.

“The proposal is presently under consideration,” he said in a reply to a question whether the government proposes to provide foreign exchange loan at cheaper rate of interest to the exporters.

He said the government is considering a proposal to provide higher insurance coverage to the banks on their export-credit-disbursement.

It is expected that it will enable banks to revise their lending rate for export credit and to provide foreign exchange loan at cheaper rate of interest, the Minister added.

Replying to a separate question, he said the current trade standoff between the US and China and the slowdown in international market is likely to have its impact on the imports and exports of countries, including India, and may bring about a shift in the bilateral trading patterns.

“The retaliatory tariffs between US and China have provided a limited window of opportunity for enhancing India’s exports to China and US, particularly in products in which India is also competitive,” Goyal said in a written reply to the Lok Sabha.

He said that India’s exports to both the US and China have increased in 2018-19 as compared to 2017-18.

Published on November 20, 2019
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