How Will SLBC Kerala Tackle Exporters' Working Capital Crisis After US Tariff Imposition?
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Synopsis
In a decisive move, the State Level Bankers Committee (SLBC) of Kerala has vowed to address the urgent working capital challenges faced by exporters due to a recent 50% US tariff. This commitment comes as exporters report significant order cancellations and cash flow issues. The upcoming SLBC meeting aims to outline strategies for support and resilience in the export sector.
Key Takeaways
- SLBC's commitment to address working capital concerns.
- Impact of US tariffs on Kerala's export sector.
- Urgent need for government intervention to support exporters.
- Importance of market diversification for resilience.
- Upcoming SLBC meeting will outline actionable steps for support.
Thiruvananthapuram, Aug 13 (NationPress) The State Level Bankers Committee (SLBC) has pledged to address the pressing working capital needs of exporters adversely affected by the recent 50% tariff on imports from India imposed by the US government.
This commitment was made during a discussion with the Kerala government's Industries, Law, and Coir Minister, P. Rajeev.
The top body of commercial banks in Kerala confirmed that this issue would be included in their upcoming meeting agenda on August 18.
The harsh tariff, announced by Washington earlier this month, has significantly impacted export-oriented businesses in Kerala.
Many exporters have reported that confirmed orders have either been cancelled or placed on indefinite hold, leading to an immediate cash flow crisis.
Minister Rajeev convened this meeting after hearing from exporters who expressed that several banks were delaying or denying approvals for working capital requests.
These concerns were initially raised during a meeting in Kochi earlier this week, where industry representatives called for urgent government action.
"The state government is fully committed to supporting the export sector during this challenging time," Rajeev assured the SLBC team.
He also committed to including the exporters' specific requests in a memorandum to the Central government aimed at securing aid.
The minister encouraged exporters to diversify their markets and lessens their dependency on traditional buyers.
"Export-oriented industries should also explore the untapped market potential within India," he noted, emphasizing the need for resilience and adaptability amidst global trade challenges.
Rajeev further stated that the government would seek new international opportunities by collaborating with members of the Loka Kerala Sabha, representing Kerala’s global diaspora.
This networking initiative, he suggested, could help identify and develop alternative markets to mitigate the impact of the US tariff.
The upcoming SLBC meeting is anticipated to present actionable measures to expedite access to working capital, enabling Kerala’s exporters to navigate financial uncertainties and maintain their competitiveness in the global market.
Point of View
NationPress
08/10/2025
Frequently Asked Questions
What is the reason behind the 50% tariff on Indian imports?
The 50% tariff imposed by the US is part of a broader trade policy aimed at addressing trade imbalances and protecting domestic industries.
How are Kerala's exporters coping with the tariff?
Many exporters are facing severe challenges, including order cancellations and cash flow problems, prompting urgent calls for government intervention.
What measures is the Kerala government taking to support exporters?
The Kerala government, through the SLBC, is working to expedite approvals for working capital and is encouraging exporters to diversify their markets.
When will the SLBC meeting take place?
The SLBC meeting is scheduled for August 18, where they will discuss strategies to support exporters affected by the tariff.
What is the significance of diversifying markets for exporters?
Diversifying markets can reduce dependency on traditional buyers and open up new opportunities, helping exporters mitigate risks associated with global trade disruptions.
