Reduced share of export credit cause of concern: Piyush Goyal

NEW DELHI: Commerce and industry minister Piyush Goyal on Friday said that the share of export credit has reduced steadily and this is a cause of concern especially for the micro, small and medium enterprises (MSME).

“In the last few years, the share of export credit has come down and this is a cause of concern especially for the MSME sector that suffers due to demand of collateral from lending institutions,” the commerce and industry ministry said in a release.

Goyal is holding a day-long meeting on issues related to export credit, with finance ministry, heads of financial institutions, and representatives of exporters organisations including Federation of Indian Export Organisations, and Gem and Jewellery Export Promotion Council.


The total disbursement of export credit was Rs 7.38 lakh crore in December 2018, a decline of 20% on year. Share of PSU banks in total disbursement of export credit declined from 65% in FY16 to 45% in FY18.

“Timely and efficient availability of export credit is critical for any trade activity and is one of the key drivers that boosts growth of export,” the ministry said, adding that the minister hoped that the result of this meeting would lead to export credit tripling in the next five years.