Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta has urged newly-appointed the Reserve Bank of India (RBI) Governor Shaktikanta Das to ensure smooth flow of credit to exports sector which is falling sharply on year on year basis, affecting the liquidity of exporters particularly the micro, small, and medium enterprises (MSMEs).
Gupta has said that while exchange rate is market driven, RBI's intervention is essential to stem extreme volatility in rupee as it is neither beneficial for exporters nor importers. He also noted that a movement of rupee in narrow band of 5 percent would be more appropriate for export sector as near predictability in rate would reduce the cost of hedging as well. Adding further, he said that the new governor will act as an effective bridge between the government and the central bank, so as to give necessary boost to the Indian economy.
In a bid to boost outbound shipments, the commerce ministry is working closely with the finance ministry to take measures for ensuring adequate availability of funds to exporters. The country's merchandise exports grew by 13.27 percent to $191 billion during April-October 2018-19.