Indian exporters are facing significant liquidity challenges,
compounded by high interest rates and a marked
decline in export finance, said Sanjay Budhia, Chairman of
the CII National Committee on EXIM.
These factors are undermining their competitiveness in
global markets, especially for MSME exporters, who are the
backbone of India’s export ecosystem.
To mitigate these challenges, Budhia has urged the
government and banks to collaborate on effective solutions.
He emphasised the need to extend the Interest
Equalisation Scheme, which expired on December 31, 2024,
for another three years to benefit all manufacturing
exporters, including MSMEs. The scheme’s limited
extension leaves Indian manufacturers at a disadvantage,
he noted. Budhia proposed increasing the interest subsidy
for pre- and post-shipment credit from 3 per cent to 5 per
cent for key sectors like leather, engineering, apparel, and
gems and jewellery.Additionally, he recommended
expanding Letter of Credit facilities for large overseas
projects and broadening the