Commerce Ministry to make additional promotional measures for reviving export growth momentum
Amidst continuous decline in exports, the Commerce Ministry has brought out plans for providing stimulus to the sector. Exports have registered fifteenth straight month decline and is set to settle near to $300 bn this year.
Different export revival measures were suggested at the meeting of the Board of Trade (BoT) on Wednesday. The BoT is a newly constituted body that has 72-member comprising mainly exporters and is chaired by the Commerce Minister.
A major suggestion put forward by the BoT is to extend Priority sector lending norm to the MSMEs (Micro and Small and Medium Enterprises) in the export sector. At present, priority sector status is given by foreign banks to export sector as per requirements. Norms for priority sector loans are set by the RBI after government recommendations.
Other measures for the revival of exports include- rejuvenation of SEZs, removing regulatory hurdles for the two institutions engaged in export finance – ECGC (Export Credit Guarantee Corporation) and EXIM Bank.
On SEZ, the Ministry’s plan whatever it may be need the support of other Ministries, especially Finance. SEZs are not performing up to their expected levels because of the tax concession withdrawal issues for them.