FIEO urges govt to revive export credit, ease logistics bottlenecks to support India's export growth
New Delhi, July 3
The Federation of Indian Export Organisations on Friday urged the government to restore export credit as a strategic priority, address rising logistics costs, create a dedicated green transition fund for exporters, and operationalise long-pending GST refunds for foreign tourists, saying these measures are critical to sustaining India's export growth and enhancing global competitiveness.
In its recommendations submitted during the Board of Trade (BOT) meeting held in the national capital, FIEO said India's exports have remained resilient despite an increasingly uncertain global trade environment, but warned that institutional support has not kept pace with the sector's requirements.
FIEO said Priority Sector Lending (PSL) for export credit has declined sharply, with export credit contracting by nearly 14 per cent in the recent period, creating serious liquidity constraints, particularly for MSME exporters.
It said exporters are facing longer payment cycles, higher logistics costs, growing compliance requirements and intense global competition, making timely access to affordable working capital more important than ever.
The exporters' body called on the government to engage with the Reserve Bank of India and the banking sector to restore export credit as a strategic priority, ensure adequate and timely export finance at internationally competitive interest rates, and encourage banks to adopt a more facilitative approach towards exporters. It said a strong export credit ecosystem would be essential for achieving India's target of becoming a $2 trillion export economy.
Highlighting logistics-related concerns, FIEO said exporters continue to face high ocean freight rates, shortages of containers and vessel space, and multiple non-transparent charges imposed by shipping lines and their agents, including congestion, peak season, documentation, detention and demurrage charges. It said these factors are increasing logistics costs, reducing export competitiveness and affecting delivery commitments, particularly for MSMEs.
The organisation urged the government to work with the Ministry of Ports, Shipping and Waterways, the Directorate General of Shipping and other stakeholders to ensure greater transparency in freight-related charges, improve container and vessel availability, and establish an institutional mechanism to continuously monitor freight and logistics issues for timely intervention during market disruptions.
— IANS
Reader Comments
The logistics bottlenecks are killing us. We export spices from Kochi, and last month we had to pay an extra 30% in peak season surcharges just to get containers. And the demurrage charges? Don't even get me started! The government should mandate that shipping lines publish all charges transparently. Enough of these hidden fees. 📦🚢
Very well-articulated demands by FIEO. The green transition fund is a forward-looking idea—European buyers are already asking us about carbon footprint data. But I'm not sure the government has the fiscal space right now. Maybe they should start with the GST refunds for tourists? That's been pending for years and is a low-hanging fruit. 🇮🇳🌱
I appreciate FIEO's recommendations but I'm sceptical. We've been hearing about 'ease of doing business' for a decade now. The reality on ground is different—paperwork is still massive, customs clearance takes ages, and export credit has actually become harder to get. The government needs to walk the talk, not just form more committees. 🤷♂️
GST refunds for tourists would be a game changer! I've seen how it works in Dubai and Singapore—tourists love it because it's instant cashback. India's 'Tax Free Shopping' scheme has been announced but never implemented properly. This could boost both exports and tourism. Win-win! 🛍️✈️
As someone working in a logistics firm, I can confirm that container
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