He added that the easy availability and cost of finance are important factors for export competitiveness. Trade is dependent on availability of finance making the linkage a strong one. There are multiple dimensions to and. He was speaking at the 4th National Summit Trade Finance for Inclusive Growth organised by ASSOCHAM.
“The new FTP 2023 released on 31st March focusses on key areas such as the liberalisation of merchanting trade and we are hopeful that it will strengthen merchandise trading in the country. I am often told that obtaining finances for domestic trade is easier than obtaining financing for cross-border trade. This could be because of the higher risk perception in cross-border trade. Mitigating and correcting this perception is needed to enable us to be competent and competitive in global market, trade finance plays a crucial role here”, he added.
He said that we have to focus and deliberate on enhancing the ease of obtaining finance, cost effectiveness and competitive interests. The efficiency of trade financing ecosystem will also play a key role. Development in digital technologies like AI and block chain will provide leverages to reduce cost of financing.
Ateesh Kumar Singh, Joint Secretary, Ministry of MSME, GoI said in a statement, “The trade industry is the one to power our economy into a $5 trillion economy. Internal trade and exports will be key drivers of economic growth. Trade is a truly diverse industry ranging from manufacturers, logistics service providers, labour agencies, warehousing, financing, insurers, regulators and even the government. As a key participant, the government is working hard to facilitate trade and mitigate challenge. A number of physical infrastructure development efforts has been undertaken by the government to improve domestic and international trade. There is an ongoing bilateral FTA effort for obtaining new preferential market access. Interoperability of UPI and PayNow in Singapore is one such results of these efforts. Digitisation and digitalisation has changed how things are done now, new players have been added and processes rationalised.”
Amiya Chandra, Additional DGFT, Ministry of Commerce and Industry, GoI said in a statement, “The G20 contributes 85% of economy, 75% of world trade and 66% of world population. International trade is the string that binds and holds the interconnected world, that is why the theme “One Earth, One Family, One Future”. It is our vision that by 2030, we take India’s share in global trade to 10% and exports to 25%. In services we have achieved 422 billion last year and in 2023 we have 6.03% growth in exports. Overall exports is at 770.18 billion with 13% growth. ”Shri Madhav Nair, Co-Chairman, ASSOCHAM National Council for Banking & CEO & Country Head- India, Mashreq Bank, said in a statement,“The new trend of financial inclusions with digital technology in commerce ad trade. There is a growing concern in rising interest rate and inflation and with constant conflicts and disruptions there is a hindrance in global supply value chain. This is a good opportunity for India to be a manufacturing hub to achieve the ambitions of global trade of 2 trillion by 2030.”The summit also saw the launch of a report titled ‘Pathways to Inclusion’ jointly produced by ASSOCHAM and Resurgent India. With key players of the trade ecosystem attending the summit, discussions on topics such as ‘Advancing Trade Under India’s G20 Presidency & Powering Global Recovery’, ‘New Foreign Trade Policy 2023: Evolving the Trade Landscape’, and ‘Global Trade Financing Requirements’ were held to support the growth of Indian trade industry.
