The persistent decline in export credit, especially to small players in the current year so far has raised fresh concerns about adequate financial support to exporters.
Input tax credit (ITC) refunds worth Rs 6,000 crore still remain unpaid to exporters, the Federation of Indian Export Organisations (FIEO) said on Thursday, asking the authorities to make the entire refund process avilable online.
FIEO president Ganesh Kumar Gupta said just like the IGST process, all the formalities involved in seeking ITC refunds must be made available online. The current system of manual submission in certain cases delays the refund process, blocking the capital of exporters. Even officials of some states cause unnecessary delay in accepting manual submissions.
Gupta also said that UCO bank is working on necessary modalities to revive the rupee payment mechanism for trade with Iran following the US sanctions, which came into effect from November 4.
Gupta also sought greater flow of credit to exporters. Export credit provided by banks fell sharply by about 51.3% to Rs 22,300 crore as of September 28 from a year earlier. This is despite the fact that total lending to the priority-sector rose 6.6%, latest data from the Reserve Bank of India showed. Overall non-food credit witnessed a rise of 11.3% up to September 28. The persistent decline in export credit, especially to small players in the current year so far has raised fresh concerns about adequate financial support to exporters. Even commerce minister Suresh Prabhu has taken up the matter with the finance ministry.