Government Measures to Boost Indian Exports

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The Indian economy has taken a hit due to the Covid-19 pandemic, and the Government aims to take some major steps to recover in the pandemic aftermath. For this, one of their major focuses have been Indian Exporters. The Confederation of Indian Industry (CII), in an agenda to boost Indian exports of goods and services in accordance with the Prime Minister’s vision of an “Atma Nirbhar Bharat”, has said India must set a goal to achieve 5% share in the world merchandise exports.

Even before the pandemic, India’s goods exports declined to $313 billion in 2019-20, partly because of a Global Slowdown, Protectionist Policies in a lot of countries and Some structural issues like lack of diversification in growing industries, low technological adaptability and absence of technology intensive foreign investment. India’s share in global merchandise exports is 1.67% currently. CII also supported the expansion of export finance services, since majority of the exporters in India lack access to export credit which restricts their growth, unlike western countries like the USA, where export credit in the form of factoring and bill discounting is prevalent.

 
It is estimated, monthly total exports in India to stand at USD 28.1 Billion in 12 months’ time. In the long-term, the monthly India Exports is projected to trend around USD 29.9 Billion in 2021 and USD 32.9 Billion in 2022
India’s average score in the Export Preparedness Index 2020 is 39 out of 100 as per NITI Aayog’s 2020 report, which represents the huge potential India has in transforming into an export-based economy with the help of export credit. Some measures were taken by the Government to unlock this potential are listed below:
 
1. Niryat Rin Vikas Yojana (NIRVIK) will be provided to uplift small exporters
 
Also called Export Credit Insurance Scheme (ECIS), this aims to increase cover and provide guarantee of up to 90%, and reduce premium of insurance for small exporters.
 
2. Reimbursement of state levies to support exports
 
The Government, approved a scheme to reimburse tax and duties to exporters with a view to boost the outbound shipments. The reimbursement of taxes such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in global markets
 
3. Development of Export Hubs
 
The Finance Minister has announced that various measures were being taken to develop each district as an export hub. The government has proposed an allocation of USD 3.86 Billion for the industry and commerce in 2020-21
 
4. Legislation to boost Export Credit
 
Anshuman Mohanty, director, Ministry of MSME, GOI, stated in an e-Summit-2020 on factoring and bill discounting that Factoring and Bill Discounting as a product has the potential to address the liquidity issues faced by MSMEs in India.
RBI permits financial institutions to provide unsecured export factoring to Indian exporters, this includes international Trade Finance companies such as Seawise Capital. This provides crucial trade finance services to help medium and small exporters to help them maintain their working capital for efficient business growth.
 
 About us
Seawise Capital is a UK based trade finance company, offering factoring facilities to Indian Exporters. We have been operating in India since 2018, and are backed by large institutional US and UK based investors. With our own balance sheet capital, we fund the customers ourselves and have a quick funding process. We have customers all over the world, ranging from small to large scale exporters and we can tailor our solutions based on your requirements. With our fast and fully online process, you can get set up with a facility in less than a week.

One of the benefits of working with Seawise Capital over other providers is our flexibility. We understand the delicacy of the supplier/buyer relationship, and structure bespoke and cost-effective solutions that work for all the parties involved. We can cover buyers in over 150 different countries, and work with leading credit insurance providers and banking partners to make sure our clients get the best service.

Get in touch with us, to see how Seawise Capital could help you grow your exports.
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