The Federation of Indian Export Organisations (FIEO) on Friday, 3 July called on the government to restore export credit as a strategic priority, tackle mounting logistics costs, establish a dedicated green transition fund for exporters, and operationalise long-pending GST refunds for foreign tourists. The recommendations, submitted at the Board of Trade (BOT) meeting in New Delhi, were framed as essential to sustaining India's export growth and sharpening its global competitiveness.

Export Credit Under Strain

FIEO warned that Priority Sector Lending (PSL) for export credit has deteriorated sharply, with export credit contracting by nearly 14 per cent in the recent period. The body said this has created serious liquidity constraints, particularly for MSME exporters already navigating longer payment cycles, tighter margins, and intensifying global competition.

The organisation urged the government to engage with the Reserve Bank of India (RBI) and the broader banking sector to ensure adequate and timely export finance at internationally competitive interest rates. It also called on banks to adopt a more facilitative approach towards exporters, arguing that a robust export credit ecosystem is indispensable for achieving India's ambition of becoming a $2 trillion export economy.

Logistics Costs Eroding Competitiveness

On logistics, FIEO flagged persistent challenges including elevated ocean freight rates, shortages of containers and vessel space, and a range of non-transparent charges levied by shipping lines and their agents. These include congestion surcharges, peak season fees, documentation charges, and detention and demurrage levies — costs that, according to the body, are reducing export competitiveness and disrupting delivery commitments, especially for smaller exporters.

FIEO pressed the government to work with the Ministry of Ports, Shipping and Waterways, the Directorate General of Shipping, and other stakeholders to bring greater transparency to freight-related charges, improve container and vessel availability, and set up an institutional mechanism to monitor freight and logistics conditions for timely intervention during market disruptions.

Green Transition and GST Refunds

Beyond credit and logistics, FIEO called for the creation of a dedicated green transition fund to help exporters meet rising sustainability compliance requirements in key overseas markets. The body also highlighted the long-pending operationalisation of GST refunds for foreign tourists as a measure that could boost inbound spending and support export-linked services.

Broader Context

India's exports have demonstrated resilience despite an increasingly uncertain global trade environment, according to FIEO, but the body cautioned that institutional support has not kept pace with the sector's evolving requirements. This comes amid global supply chain realignments and growing protectionist pressures that present both risk and opportunity for Indian exporters. The BOT meeting provided a formal platform for the export community to place these concerns directly before policymakers. Whether the government acts swiftly on these recommendations will be closely watched by the MSME and export sectors in the months ahead.