Welcoming the Reserve Bank of India’s (RBI) decision to reduce the policy repo rate by 35 basis points from 5.75% cent to 5.40%, Engineering Export Promotion Council (EEPC) India chairman, Ravi Sehgal has said that the central bank should ensure easy credit disbursal to exporters, especially in the MSME sector, and real transmission by the banks of the earlier reductions in the lending rates.
Sehgal noted that exporters need to be supported in terms of easy credit disbursals without procedural bottlenecks, requiring cumbersome documentation, as they are facing global headwinds and slowdown in several key markets.
EEPC chairman also expressed a need to strengthen the ombudsman mechanism by RBI, for redressal of grievances and difficulties faced by exporters so that they are empowered to scale up their competitiveness. Besides, he said that India's merchandise exports with a major stake of the MSMEs dropped by over 9% in June, making a strong support by RBI and the government imperative.