India trade is growing, but still at a nascent stage

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(L-R) Nihar Lakhia, Joint Director, FIEO (WR), K. Subramanian, Ex-banker

  Experts say that while India’s trade community has grown in size, much remains to be done to get Indian exporters on par with global competitors. On the eve of a seminar by the Federation of Indian Export Organisations (FIEO) in Mumbai this week on “Exports and Export Finance”, Nihar Lakhia, Joint Director of FIEO (Western Region), told The Dollar Business, “The import export community in India has become too big now and that’s why FIEO organizes such programs to keep people up to date and aware of the dynamics of global trade.” However, more needs to be done to help India’s exports become competitive. On asking what are the difficulties currently faced by an average exporter in India, K. Subramanian, the speaker of the seminar and an ex-banker, said, “There are three things. First is the knowledge – that’s the key to do anything. Second, it is about finance and capital, and finally, we are not globally competitive or at par with our global peers.” He added that although the government is trying to do lot of things through various ministries to encourage trade, Indian trade is still in its nascent stage. Apart from dealing with export procedures and documentation, the seminar also highlighted that export finances can be availed by businesses aiming to reach the global markets. While exporters can avail pre-shipment credit as a loan for raw materials, manufacturing, processing, and packaging of goods prior to shipment, post-shipment credit is available as loans after shipment of goods to the date of payment realized. Almost all the major banks deal in pre and post-shipment credit facilities, speakers at the seminar said.