New Delhi, Sep 7 Indian exporters are likely to meet RBI Governor Sanjay Malhotra next week to seek easier loan repayment norms and waiver of penal interest in the wake of the challenging situation that they face due to the hike in US tariffs that have put them at a disadvantage vis-a-vis their competitors.
The exporters are expected to request a 12-month moratorium on credit repayment and demand a relaxed NPA classification on export loans of up to 180 days in the meeting with the RBI Governor expected to be held on Thursday, according to an NDTV Profit report.
They also want a sovereign guarantee scheme to help them diversify into new markets following the higher tariffs in the US. The Trump administration has imposed a 25 per cent punitive tariff on India for purchasing Russian oil, on top of the 25 per cent base customs duty. The 50 per cent tariff is among the highest, making Indian goods uncompetitive compared with countries like Vietnam and Bangladesh with which India competes in sectors such as textiles, leather and footwear. These are labour-intensive sectors, and it is feared that any major loss in the market could lead to job losses.
The RBI Governor has indicated the central bank's readiness to take appropriate measures to support the economy. "Whatever is required to support economic growth, including those of sectors that are impacted more, we will not be found wanting in our job," he said at an annual banking conference last month.
He had emphasised that it was important to seize new opportunities amid rising global challenges.
"We are now at a critical juncture as we navigate a choppy global environment characterised by heightened trade uncertainty and persisting geopolitical tensions. We need to push the frontiers of growth. We must step up our efforts to address the emerging challenges, and at the same time, seize the opportunities that are coming our way," Malhotra remarked.
He highlighted that the world economy is facing a challenging phase marked by persistent trade frictions, heightened uncertainty and geopolitical tensions.
On the US tariff hike, the RBI Governor said that there was still hope that negotiations would play out and the impact on the Indian economy would be negligible.
"We are hopeful that negotiations on tariffs will play out and there will be minimal impact on India’s economic growth," he said.
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