'New policy framework must to address export finance issues'

Mumbai, Jan 12 (PTI) The country needs to spruce upits policy framework to address exporters' finance needs ifwe were to become a USD 5-trillion economy, a top governmentofficial said."To become a USD 5-trillion economy, we need 40 percent trade contribution and exports of at least USD 1trillion. To achieve this, we must actually gear up our policyframework and address the precise needs of export finance andinstitutions serving exporters," commerce secretary RitaTeaotia said here today.Addressing an industry event organised by trade lobbyAssocham,' she said, banks and financial institutions need tobecome more sensitive towards small units, which contribute 30per cent of exports in terms of value."We are facing several challenges on trade financeissues. Our policy framework is not entirely geared up torecognise risks of overseas markets and credit availability."There is a large challenge for MSMEs and unless weaddress that, we are not going to become a significant globalplayer," the top commerce ministry official said.The commerce secretary also stressed upon the need tospruce up banking policy to serve the needs of smallmanufacturers, services sector and exporters.She said the commerce ministry provides bothguarantees and insurance for export finance through variousschemes like merchandise exports scheme."But these alone cannot make a difference and it isnecessary for the banking sector and financial institutions tobe more sensitive to these sectors," Teaotia said.Stressing on the importance of like gems & jewellery, pharma and handloom sectors, she said these sectors offer good potential to excel.

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