Millennium Post
Business

Include exports in priority lending: Foreign trade D-G

The Commerce Ministry has asked the Finance Ministry to include export credit in priority sector lending of all banks to boost overseas sales.
'We have taken up this matter with the Finance Ministry. It will help exporters in getting easy and affordable credit from banks,' director general of foreign trade Anup Pujari said.

At a Board of Trade meeting on 27 August, export promotion councils and industry leaders demanded the inclusion of export credit in priority sector lending, Pujari said.

'Exporters have told us that total credit from banks to the export sector is falling,' he added.
A communication regarding the issue has been sent to the Finance Ministry.

The flow of credit to the export sector is declining and is a cause of concern, said Ajay Sahai, Director General of the Federation of Indian Export Organisations.At present, only foreign banks are required to disburse 12 per cent of their credit under the priority sector to export companies.
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