The government has asked exporters to continue their business with West Asia as a full government support ecosystem is in place and requests for assistance under various schemes and Export Promotion Mission (EPM) are being processed quickly.
The government has also asked them to frame proposals for starting warehousing or other means of storing merchandise in buyer countries, which is one of the key components of EPM. For marketing the export promotion councils have been asked to draw up a three year rolling event calendar that will give exposure to small and medium exporters and host mega buyer seller meetings.
West Asia is an important destination for India’s exports.. Due to the Iran-Israel-US war exports to the region declined 57.9% on year to $ 2.5 billion.
Under various components of the Resilience & Logistics Intervention for Export Facilitation (RELIEF) launched on 19th March to cover the credit risks and higher costs of exporters for freight and insurance – the claims have been received and some payments already made.
The third component of the scheme that offers partial reimbursement for up to Rs 50 lakh per exporter for higher freight and insurance costs that MSME exporters paid between February 14 to March 15 – the implementing agency ECGC has received 415 claims of which 69 have already been approved. Outlay for this component is Rs 282 crore.
In the first component of RELIEF that enhanced insurance cover against payment default to 100% for exporters who had taken ECGC cover for goods shipped out between February 14 and March 15, six claims have been received. In the second component of the scheme the that froze the premium on insurance against payment default despite war risk, 20 exporters
To ensure liquidity the speeding up of issuance of Export Obligation Discharge Certificates (EODC) will result in additional liquidity as this would help exporters get their bonds and bank guarantees released. There has been a 63% decline in the pending EODC under the Advance Authorisation (AA) and Export Promotion Capital Goods Scheme (ECGC).
Under the Export Promotion Mission the relaunch of the Interest Equalisation Scheme (IES) in January has resulted in a strong response. Same is the case with collateral support.
TOPICSWest AsiaThis article was first uploaded on May three, twenty twenty-six, at fifty-nine minutes past six in the evening.