Lok Sabha Question No. 660 (UNSTARRED), answered on 2020-09-16
Subject: Export Credit
Ministry: COMMERCE AND INDUSTRY
Asked by: Rajeshbhai Naranbhai Chudasama

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 660 TO BE ANSWERED ON 16 th SEPTEMBER, 2020

## EXPORT CREDIT

## 660. SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether Ministry is aware that there is a sharp decline in export credit given by banks during the last four years;
- (b) if so, whether Ministry has ever tried to find out the reasons behind this;
- (c) the short and long-term measures that have so far been taken to correct the situation and how the above decline has impacted the exports;
- (d) whether any consultations have been held with RBI to provide some credit from its currency reserves; and
- (e) if so, the details thereof?

## ANSWER

okf.kT; ,oa m|ksx ea=h ( Jh ih;w'k xks;y ) THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

- (a): As reported by Reserve Bank of India (RBI), the data on 'Export Credit-Balance outstanding' as at the end of FY 2016-17 to FY 2019-20 for Scheduled Commercial Banks, as submitted by the Banks to RBI is shown  below:

(Amount in ₹ Crore)

| Bank Group Name                    | Export Credit - Balance Outstanding as on   | Export Credit - Balance Outstanding as on   | Export Credit - Balance Outstanding as on   | Export Credit - Balance Outstanding as on   |
|------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
|                                    | 31.03.2017                                  | 31.03.2018                                  | 31.03.2019                                  | 31.03.2020                                  |
| Foreign Bank Group                 | 71,009                                      | 66,162                                      | 61,249                                      | 55,095                                      |
| Private Sector Banks               | 48,297                                      | 57,235                                      | 54,633                                      | 62,347                                      |
| Public Sector banks                | 1,24,198                                    | 1,20,493                                    | 1,10,945                                    | 1,02,215                                    |
| Small Finance Bank Group-Scheduled | -                                           | -                                           | -                                           | -                                           |
| Scheduled Commercial Banks         | 2,43,505                                    | 2,43,890                                    | 2,26,826                                    | 2,19,656                                    |

- (a) &  (c):  Review  of  these  issues  and  suitable  policy  steps  are  an  ongoing  part  of Governmental actions. Some of  the measures undertaken to address export credit related issues  in India are, inter-alia, as follows:-
- (i) On  1 st April  2020,  RBI  has  extended  the  time  period  for  realization  and repatriation of export proceeds for exports made up to or on 31 st July 2020 from 9 months to 15 months from the date of export.
- (ii) On  22 nd May  2020,  RBI  has  extended  the  time  period  for  completion  of remittances against normal imports into India (except in cases where amounts are withheld towards guarantee of performance) from 6 months to 12 months from the date of shipment for such imports made on or before 31 st July 2020.
- (iii) On 23 rd May 2020, RBI has increased the maximum permissible period of preshipment  and  post-shipment  export  credit  sanctioned  by  banks  from  the existing one year to 15 months, for disbursements made up to 31 st July 2020.
- (iv) RBI vide its circular dated 20.09.2019, has enhanced the sanctioned limit for classification  of  export  credit  under  PSL  from  ₹25  crore  to  ₹40  crore  per borrower.
- (a) & ( e):   Consultations on export credit are regularly held with RBI and they are sensitive to the concerns of exporters.

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