The Commerce Secretary Rita Teaotia said that the country aims to become a 5-trillion economy. To accomplish this mission, the country needs to spruce up its policy framework to address exporters’ finance problems.
“To become a $5-trillion economy, we need 40 per cent trade contribution and exports of at least $1 trillion. To achieve this, we must actually gear up our policy framework and address the precise needs of export finance and institutions serving exporters,” Commerce Secretary Rita Teaotia said here on Friday.
Addressing an industry event organised by trade lobby Assocham,’ she said, banks and financial institutions need to become more sensitive towards small units, which contribute 30 per cent of exports in terms of value.
“We are facing several challenges on trade finance issues. Our policy framework is not entirely geared up to recognise risks of overseas markets and credit availability. There is a large challenge for MSMEs and unless we address that, we are not going to become a significant global player,” the top commerce ministry official said.
The Commerce Secretary also stressed upon the need to spruce up banking policy to serve the needs of small manufacturers, services sector and exporters. She said the commerce ministry provides both guarantees and insurance for export finance through various schemes like merchandise exports scheme.
“But these alone cannot make a difference and it is necessary for the banking sector and financial institutions to be more sensitive to these sectors,” Teaotia said. Stressing on the importance of like gems & jewellery, pharma and handloom sectors, she said these sectors offer good potential to excel.