Project Exporters Urged to Explore Markets in the Developed World

· Goyal Urges Bankers to abandon Conservatism and be Open to Taking Risks

· India has all the Necessary Ingredients to become a Global Player in Project Exports

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal on 5 May 2022 asked project exporters to diversify and foray into markets of the developed world and urged them to not restrict themselves to Government Line of Credit Projects and projects in the developing world.

He was delivering the Keynote Address at the ‘Summit on Enhancing Global Opportunities for Indian Project Exporters’ organized by the Exim Bank in New Delhi on 5 May 2022.

Developed countries may very well offer advantages of low risk and lower capital requirement with higher credit rating of projects which will enable companies to for higher credit limits, he elaborated.

He complimented India Exim Bank for supporting exporters, for organizing the Summit by including international stakeholders, and for conducting the study on Indian Project Exports.

Outlining the challenges that global economy has been facing since the start of 2022 such as the Omicron wave, global supply chain disruptions, soaring raw material costs, container shortages, global financial market volatility and geopolitical tensions, the Minister observed that it was in this context that the summit is both timely and important.

Observing that several heads of governments and ministers had chosen India as their first destination post Covid, the Minister said that it signalled the tremendous interest that the India story has generated in the world. It is a recognition of efforts put in by each citizen and is indicative of a bright future for the nation, he added.

The Minister congratulated all the stakeholders for the blockbuster export performance of nearly USD 675 billion in 2021-22 and the record-breaking services export of nearly USD 254 billion, even with a pandemic induced slowdown in travel and hospitality. Even the export figures of April 2022 which touched almost USD 38 billion are historic, he noted.

The Minister also urged the banking sector to abandon the mindset of conservatism that has set in the sector and be open to taking some risks and added that risk taking was an integral part of business.

India has all the necessary ingredients to become a global player in project exports, the Minister said and added that the world has realized that it is absolutely essential to invest in infrastructure. Project exports would also help our services and goods export to grow, he opined.

He asked the project export sector to look at credit enhancement schemes and find backstop arrangement for private banks to come into project financing.

Highlighting the Government’s Lines of Credit (LOC) programme that has particularly been pivotal in creating opportunities for Indian project exporters, the Minister said that through Concessional Financing Scheme (CFS), Government has been supporting Indian companies bidding for strategic infrastructure projects in the overseas market.

He also asked project export sector to proactively engage with government’s FTA negotiations and give inputs and feedback about the market access problems or discriminations they faced with FTA countries. He assured that these concerns would be factored into India’s FTA negotiations.