Despite being a leading state in exports, Gujarat has performed “rather poorly in providing access to credit to exporters”, observed the National Bank for Agriculture and Rural Development (NABARD) in its annual State Focus Paper for 2023-24. The paper, unveiled last week at Gandhinagar, pointed out that Delhi, Tamil Nadu and West Bengal were ahead of Gujarat in providing credit.
The State Focus Paper quotes the NITI Aayog ‘Export Preparedness Index Report’ and states that Gujarat has an Export Credit to GSDP ratio of one percent.
Listing out measures that can be taken to tap the potential of GIFT City in enhancing Export credit, NABARD stated that the government should promote Indian exporters and importers to use IFSC exchanges for their fund-raising programme through issuance and listing of foreign currency bonds or any other offshore instrument.
It has also suggested permitting the Indian exporters to avail rupee denominated External Commercial Borrowings from IFSC Banking Units.
Close to 50 percent of the total merchandise exports from Gujarat comprises five to six commodities such as petroleum products, organic chemicals, agro chemicals, drug formulations, dyes and plastic materials.
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