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Let Credit Cost not be a Deterrent To Export Growth: FIEO President

 

 

New Delhi:

Port Wings News Network:

While commenting on anticipated unchanged interest rates due to inflationary risks (MSP increase/commodity prices unwinding/fiscal slippage), Mr Ganesh Gupta, President, FIEO, stated that for the export credit, which was in the priority sector had shown a decline of -2.5% in 2016-2017 and a YOY decline of -8.7% in 2017 needs to be addressed as exports growth is forecasted at 15 % in the Union Budget and if that be the case then cost of funds should not act as a deterrent for export business.

Mr Gupta stated that RBI data indicates that cost of funds is in the range of 4.24 to 6.11%, whereas return on investments/funds being higher in the absence of robust demand skews business decisions for borrowing from scheduled commercial banks even as they sit on operating profits of as high as 18% with net profits as high as 28%.

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