As per data compiled by RBI, the balance outstanding for export credit by all Scheduled Commercial Banks (SCBs) increased from ₹ 1,85,591 crore as on 31.3.2015 to ₹ 2,43,890 crore as on 31.3.2018 before declining to ₹ 2,26,363 crore as on 31.3.2019.

Government has taken following major steps to increase the flow of credit to micro, small and medium enterprises (MSME) exporters:

(i)    raising interest equalization rate under Interest Equalisation Scheme (IES) from 3% to 5% for MSME exports,

(ii)   including Merchant exporters under IES for Pre and Post Shipment Rupee Export Credit,

(iii)  facilitating export under GST by permitting Letter of Undertaking in place of bond with no bank guarantee for exporting goods or services or both,

(iv) allowing merchant exporters to procure goods from domestic suppliers, for export, with nominal GST of 0.1%,

(v)   provisional sanction of 90% GST refund amount for exports within 7 days,

(vi) reducing insurance premium rates by an average of 17% for export credit.

Department of Financial Services has informed that RBI is currently examining the priority sector lending norms for export credit and certain enabling guidelines are under consideration. When issued, revised guidelines are expected to release additional ₹ 350-680 billion export credit under priority sector.

RBI has informed that it is not in favour of earmarking a part of foreign exchange reserves for export credit.

This information was given by the Minister of Commerce and Industry, PiyushGoyal, in a written reply in the Rajya Sabha today.

Export credit support measures aim to boost MSME exports through interest equalisation and priority sector adjustments. Decline in export credit prompted measures to boost MSME exporter financing: raising the Interest Equalisation Scheme rate and including merchant exporters for pre- and post-shipment rupee credit; GST facilitation via Letters of Undertaking without bank guarantees and nominal GST on domestic procurement by merchant exporters; expedited provisional GST refunds; and reduced export credit insurance premiums. Revised Priority Sector Lending norms are under consideration to release additional export credit, while the central bank opposes earmarking foreign exchange reserves for export credit.