New Delhi– A committee headed by the Union Finance Secretary has been constituted to recommend ways to strengthen the functioning of India’s Export-Import (EXIM) Bank and the Export Credit Guarantee Corp (ECGC), it was announced on Tuesday.
“Committee for recommending ways to strengthen functioning of EXIM Bank & ECGC constituted. Secy Finance to chair the committee,” Commerce Minister Nirmala Sitharaman said in a tweet.
“The idea is to look at ways in which EXIM Bank & ECGC can be further strengthened to support & handhold our exporters,” she said in another tweet.
The minister said the committee would submit its recommendations within six weeks from the date of holding the first meeting, without specifying any date for this meeting.
“The committee will examine need for capital infusion, addressing regulatory constraints etc. wrt EXIM bank & ECGC,” she added in a separate tweet.
Sithraman’s comments come after her declaration earlier this month in Chennai that the continuous decline in Indian exports since last year had finally been arrested, and that the growth in exports will now be slow and steady.
“Exports will grow. I would not say it will grow fast, but slowly and steadily. I cannot speculate on the level because the global demand is not picking up. We can only hope it will increase,” Sitharaman said while addressing the Regional Editors Conference.
She said her ministry was looking into diversification of the export product basket, diversification into non-traditional markets, as well as conclusion of ongoing free trade agreement (FTA) negotiations.
The fall in India’s merchandise exports over a year and a half was at last arrested in May as data showed in June.
Exports declined for the 18th consecutive month in May at $22.17 billion, down 0.79 per cent in dollar terms, against $22.35 billion in the like month of last year.
She said arrest in the exports’ fall was a result of certain steps taken in September last year like the interest subvention scheme and the performance-based incentive schemes for merchandise and services.
Exports in July fell 6.84 per cent to $21.69 billion, compared to $23.28 billion in the corresponding month of 2015.