India To Cut Export Transaction Costs By Rs. 2100 Crore.

Government unveiled measures to reduce the transaction cost for exporters by Rs. 2100 crore. Measures include reduction in bank charges on foreign currency and concessional loans for reducing transaction cost.

Minister of state for commerce and industry Jyotiraditya Scindia, finance minister Pranab Mukherjee had jointly created task force who had announced all the measures. They have calculated that total transaction cost is about 7-10% of the entire value of Indian exports.

The minister said that first of all there is an immediate need to reduce the total time taken for exports, then proper procedures should be taken to reduce the financial costs of export transactions and finally there is a need to reduce the bare bones related to procedural issues which are hindering the profits of exporters.

Pranab Mukherjee announced that government has already taken steps for custom clearance at eight custom ports inculding Visakhapatnam, Kolkata, Jamnagar, Mangalore, Jawaharlal Nehru Port Trust, Mumbai, Bhubaneswar and Chennai.

Government has also instructed banks to ensure the availability of post shipment credit at prescribed rates up to 180 days in case of overdue bills. The RBI has asked banks to extend pre-shipment credit in foreign currency at the global benchmark of LIBOR (London Interbank Offer Rate) + 2 per cent interest rates.

Source : topnews.in