Government extends Rs.4.5 lakh crore ECLGS till 31 March 2022
India’s merchandise exports in the first 8 months of 2021-22 have touched US$233 billion, a 54% growth over the previous year. This export growth has been led by sectors like engineering goods, gems & jewellery, electronics, chemicals and pharmaceuticals among others, Minister of State for Finance, Dr Bhagwat Karad, told an industry conclave on 26 Nov 2021.
The Production Linked Incentive (PLI) Scheme announced by the Government is having a positive impact in boosting manufacturing and promoting exports, Dr. Karad said at the ‘Banking Conclave for Exports’ jointly organized by Federation of Indian Export Organizations and Union Bank of India in Mumbai.
The PLI Schemes covers 13 key sectors with high potential for growth.
The Government has set a US$400 billion target for merchandise exports during the current fiscal.
He elaborated that the Emergency Credit Line Guarantee Scheme (ECLGS) has proved to be important for different industries.
“Due to demand from industrialists, the Government has extended the Rs.4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) till 31 March 2022 to help businesses cope with the pandemic’s adverse effects. Rs.2.9 lakh crore of this fund has been sanctioned by different banks,” he said.
The Minister assured full support of the banking system to exporters and said banking scenario in the country has significantly improved with the presence of 12 public sector banks, 22 private banks, 46 foreign banks, 56 regional rural banks, 1,485 urban cooperative banks and 96,000 rural cooperative banks.
He further said that RBI has enhanced the limit for classification of export credit under priority sector lending to Rs.40 Crore from Rs.25 Crore.
Also addressing the conclave, FIEO Vice President Khalid Khan listed various challenges faced by exporters and asked intervention of relevant authorities.
Dr. Karad assured to convene a joint meeting of various export organizations, Bank CMDs and other stakeholders in near future to resolve the issues. #exports #manufacturing #investment /fiinews.com
