Engineering industry seeks easy export finance

EEPC has demanded that the rate of financing for exports, both pre-shipment and post-shipment, be directly linked to LIBOR. That would help exporters in meeting the working capital requirements, EEPC said in its pre-Budget memorandum.

Engineering Export Promotion Council (EEPC) has demanded that the rate of financing for exports, both pre-shipment and post-shipment, be directly linked to LIBOR.

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That would help exporters in meeting the working capital requirements, EEPC said in the pre-Budget memorandum submitted to the Finance Ministry.

EEPC sources told PTI that by linking export finance to LIBOR, exporters would be able to take advantage of falling interest rates and enhance competitiveness in the world market.

With a current market share of less than one per cent in the world market, India's engineering exports had touched $10.5 billion (Rs 46,000 crore) in the last financial year.

EEPC had set a target of achieving one per cent of world's market share by the year 2007.

The western region topped the list in terms of exports, followed by northern, southern and eastern region.