New Delhi: Indian exporters, especially MSMEs, should look beyond traditional developed markets and explore newer destinations to sustain growth amid rising global uncertainties, a top official at Export-Import Bank of India (EXIM) said on Monday.
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“As EXIM Bank, we also encourage Indian companies, especially MSMEs, to look at newer markets because sometimes we feel there is a saturation in the developed or traditional markets, and for the newer markets, the comfort that MSMEs or other corporates want is in terms of security of their money coming back for the goods," Harsha Bangari, managing director at EXIM Bank, told PTI.
She said EXIM Bank provides trade finance support to help exporters manage payment-related risks while entering new markets. "We are guaranteeing the LCs issued by the importer's bank," she added.
The comments come amid concerns over global disruptions, including tariff actions, the Middle East crisis and logistics challenges, which have increased financing requirements for MSMEs. Additionally, global uncertainty has also disrupted the cash flows of the MSMEs.
“The requirement of MSMEs for higher credit may have definitely gone up because they have been facing headwinds from various geopolitical events, be it the US tariff action, subsequently the Middle East crisis, and now, of course, elongated logistical requirements due to the stoppage of certain routes and all that," she said.
Bangari added that there has not been any major disruption in credit availability for MSMEs, although the demand for funds has increased. She also highlighted that access to finance remains a challenge for smaller exporters due to high funding costs and collateral requirements.
"Currently, when we look at MSMEs again, they have problems accessing credit, the cost of credit is very high, and there is a requirement for collateral," she said.
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She added that the government and financial institutions are responding to evolving challenges through various support measures.
"The environment is very fluid and the challenges are very different and depending on the challenges faced, I am sure the response will be there," she said.
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