Exports must get priority sector lending tag: Suresh Prabhu

Commerce and Industry Minister Suresh Prabhu has said his ministry wants to include the export segment under the priority sector lending category and it has taken up the issue with the Reserve Bank of India.

“Exports is a strategic issue which promotes India’s interest and therefore its a strategic priority for India (but) not a priority sector lending for banking sector. This is a complete paradox,” he said.

   

Prabhu, who is also the Civil Aviation Minister, was speaking at the 44th India Gem & Jewellery Awards organised by Gem and Jewellery Export Promotion Council (GJEPC) here late evening.

This is not a commercial banking problem, but the one related to the regulator, he said adding, “I have already told the RBI governor that you must treat exports as priority sector lending.”

 “Banking is a very important issue and we must address it and we will continue to work on it and make sure that the genuine credit requirements of the sector are met,” the minister added.

Treating exports under the priority sector lending will help India achieve the target of becoming a USD 10 trillion economy by 2035 amid the current operating environment, Prabhu said.

With joint efforts of the government, industry and other stakeholders, India will definitely be able to become a 5-trillion dollar economy within 7-8 years, he said adding, “India will become a 10 trillion dollar economy by 2035.” 

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