NEW DELHI : At the 4th National Summit Trade Finance for Inclusive Growth organised by ASSOCHAM, the state of global trade finance was discussed by industry leaders. One point came across clearly: the path to growing the Indian economy is easy access to trade finance. Deepesh Patel, TFG’s Editorial Director, recently joined the ASSOCHAM Trade Finance Steering committee, helping to provide insights into market activities and trends.

Shri Subhash Chandra Aggarwal Additional DGFT, Ministry of Commerce and Industry, GoI said, “The easy availability and cost of finance are important factors for export competitiveness. We have set a target of $2 trillion in exports with equal contributions from goods and services by 2030. Trade is dependent on the availability of finance making the linkage a strong one. A robust and easy trade finance system is important for us to achieve the targeted export goals. There are multiple dimensions to and we have to improve our physical infrastructure, digital infrastructure and trade finance infrastructure, this has to happen in tandem as they are closely interlinked.” 

He stated, “The new FTP 2023 released on 31st March focuses on key areas such as the liberalisation of merchanting trade, and we are hopeful that it will strengthen mercantile trading in the country. It has been observed that obtaining financing for cross-border trade is often perceived as more challenging compared to domestic trade. To enhance our competence and competitiveness in the global market, we need to address and rectify this risk perception. Trade finance plays a vital role in mitigating these challenges.”

“We have to focus and deliberate on enhancing the ease of obtaining finance, cost-effectiveness and competitive interests. The efficiency of the trade financing ecosystem will also play a key role. Development in digital technologies like AI and blockchain will provide leverages to reduce the cost of financing.” he reiterates.

Delivering a special address at the summit, Dr Amiya Chandra, Additional DGFT, Ministry of Commerce and Industry, GoI said, “The G20 contributes 85% of the economy, 75% of world trade and 66% of the world population. International trade is the string that binds and holds the interconnected world, which is why the theme “One Earth, One Family, One Future”. It is our vision that by 2030, we take India’s share in global trade to 10% and exports to 25%. In services, we achieved 422 billion last year and in 2023 we have a 6.03% growth in exports. Overall exports are at 770.18 billion with 13% growth. ”