Gujaratwitnessed a significant decline in export orders across key manufacturing sectors, leading to a failure in meeting the export credit targets set by banks under the Service Area Credit Plan (SACP) for the fiscal year 2022-23.
According to the State Level Bankers Committee (SLBC) Gujarat report, export credit targets were achieved at a mere 11% of the intended amount during FY 2023. Out of the targeted Rs 2,356 crore, only Rs 272 crore was disbursed throughout the year.
In terms of the number of accounts, the achievement in disbursals was less than 1%, with only 112 accounts receiving funds against the targeted 23,810 accounts.
The decline in exports within sectors such as gems and jewellery, textiles, chemicals, and engineering goods is believed to be the primary reason behind this underperformance.
Several key manufacturing sectors, including dyes, intermediates and chemicals, leather, Active Pharmaceutical Ingredients (APIs), engineering, and plastics, have witnessed a drop in exports.
The combination of these factors has posed challenges for achieving the export credit targets in Gujarat.