New Delhi: There are several paths and ways to achieve the target of $5 trillion economy and trade route will play a key role in achieving that. Much importance has been given to export part of trade but internal trade also plays an important part in the growth process. The government has undertaken big ticket reforms and expanding the scope of definition. Extension of priority lending status, inclusion of criteria’s like turn over and the expansion to include retail and MSME within the definition and the recent approval for international trade settlement in rupees will help boost international trade. says,  Ateesh Kumar Singh, Joint Secretary, Ministry of MSME, Government of Indiaat an ASSOCHAM Event.

 “Digitisation and digitalization of trade financing is needed for the growth of the sector and by 2025 the market for trade financing will touch $200 billion. We will also need to further increase the scope and dimension of trade financing. As of now, MSME’s are hesitant to fully adopt e-commerce and are looking at a hybrid model. The government is working to fortify and strengthen the trade system to make it more accessible and enhance availability” the Jt. Secretary said.

 “We look forward to working with the industry and request them to come forward with their knowledge and help find solutions to build better inter-operability and improve payment and settlement system. An integrated portal of the finance ministry and ministry of MSME to promote trade financing is in the work and will help streamline the process and help in information dissemination and highlighting available trade potentials” he added.

Shyam Govindan, Partner- Consulting, Deloitte India said Shyam Govindan, Partner, Deloitte India said” India has witnessed steady growth in overall exports over the last few years, albeit inconsistently, however exports did well since April 2021. Particularly in FY22, India contributed to 5 percent of global trade with US$756.7 billion imports and US$669.7 billion exports.

 He focused on MSMEs being backbone of Indian economy, have been the key beneficiaries of the recent regulatory reforms and technological innovations led by the trade financing players, yet the financing gap persists.

Assocham Deloitte knowledge report “Trade Finance Ecosystem- a path to inclusive and sustainable growth” was released by the Chief guest and dignitaries. 

Shubhendu Moitra, Chief Credit Officer, India Infrastructure Finance Company Ltd., shared his insights on facilitating trade finance with trade practice and why a global approach to trade finance is essential. He went on to say, “Pandemic has helped to reshape global production and have multipurpose collaboration to achieve sustainable goals and a focus on the environment.” With the evaluation of digital currencies, a technological shift has created a new challenge for international trade. He stated that we must establish an advisory ecosystem and assist MSMEs in such situations through collaboration and advisory.

Gajendra P Singh, Senior Vice President and Group Head of Corporate Affairs at JSW, India is reliant on imports, and rising inflation will stifle economic growth; he added, and trade finance has been implemented for a long time, and risks have increased. With the right policy regime, the RBI has facilitated long-term improvements in trade finance. He stated that the government is intervening in the right direction, with numerous engagements with other countries for exports to new foreign markets such as Europe and the United Kingdom. 

Shagun Jain, Sr VP, YUBI shared that credit is a fundamental right in business and corporate as it helps to realise the opportunity. He stressed, It is a transformation shift of society so that when it is moved freely, economic development will happen. Capital should be provided to the people who need it for the ecosystem at every price point to avail finance , he added. 

S C Aggarwal, Senior Member ASSOCHAM and Chairman and MD, SMC Group gave his vote of thanks and quoted that trade constitute world economy by 90%. There is a dire need of the Funding requirement by SMEs as it has huge potential. Digitalization, tech, ESG funding are the growing trends in Trade Finance, he concluded.