According to a recent press release it is seen that the Ministry of Commerce and Industry has been taking more efforts to offer dollar credits to the exporters. The inter-ministerial committee on dollar credit, formed in 2009 which comprises of the Reserve Bank of India, the Ministry of Commerce, Ministry of Finance and representatives from the banking industry would be renewed soon.
Mr. Anand Sharma, The Minister of Commerce and Industry said that the committee meeting would be held within two weeks, in order to arrive at a solution for the issues regarding dollar credit.
Mr. Ramu Deora, President of Federation of Indian Export Organizations said that Packing Credit in Foreign Currency (PCFC) which is to be made available at London Inter-Bank Offer Rate (LIBOR) plus 200 basis points is not being extended by the banks. He said that PCFC of at least 50 per cent of the dollars earned by the exporters in the previous month should be available to them. He also added that those who earned dollars for their export production should get for the import inputs.
Regarding exports Mr. Sharma said that the export target of $300 billion for 2011-12 is likely to be achieved. The Government has announced to provide the labour intensive export industries with incentives to support them from struggling due to the slowdown in the advanced markets such as US and the European Union.