Despite repeated deliberations by stakeholders, export credit has failed to take off in Haryana. Against the national target of 2% of total advances, the disbursement in Haryana was just 0.05% in the last fiscal. The total advances in the state were Rs 3,25,641 crore.
The share of export credit is on downward trend for the past few years. In 2019-20, the advances to export sector was 0.05% of the total advances while it was 0.10% in 2018-19.
The timely availability of export credit is crucial for exports and any decline in credit offtake takes a toll on exports, especially hitting the MSME sector that always faces fund crunch.
Export finance plays a crucial role in enabling exporters to execute their orders efficiently.
While the pre-shipment export finance is required as WORKING CAPITAL for accomplishing timely production, packing and shipment of the orders, the post-shipment finance helps in sustaining exporters operations while awaiting payments from foreign buyers.