14-05-21 Daily-Haryana-HPSC Current Affairs

Despite repeated deliberations by stakeholders, export credit has failed to take off in Haryana. Against the national target of 2% of total advances, the disbursement in Haryana was just 0.05% in the last fiscal. The total advances in the state were Rs 3,25,641 crore.

The share of export credit is on downward trend for the past few years. In 2019-20, the advances to export sector was 0.05% of the total advances while it was 0.10% in 2018-19.

The timely availability of export credit is crucial for exports and any decline in credit offtake takes a toll on exports, especially hitting the MSME sector that always faces fund crunch.

Export finance plays a crucial role in enabling exporters to execute their orders efficiently.

While the pre-shipment export finance is required as WORKING CAPITAL for accomplishing timely production, packing and shipment of the orders, the post-shipment finance helps in sustaining exporters operations while awaiting payments from foreign buyers.

Foreign direct (FDI) inflows into India rose 9.8% to a record $81.7 billion in 2020-21 on a gross basis on the back of record investment into companies such asReliance Jio.
Fresh Equity inflows are estimated to have increased by an impressive 19% to $59.6 billion, while reinvested earnings went up 14% to $16.2 billion.

Singapore was the top source, which is now followed by the United States with Mauritius once the dominant source of FDI due to tax benefits under the tax avoidance treaty pushed to the third spot.

In terms of Growth, inflows from Saudi Arabia. jumped from $90 million in 2019-20 to $2.8 billion last year. And with E-Commerce and IT being the major draw for overseas investors looking to tap into the India consumption story, computer Software and hardware emerged as the most attractive sector to invest, cornering nearly 44% of the FDI equity inflows. Next was construction (Infrastructure), which accounted for a 13% share. Among the states it was Gujarat that was the top recipient, according to the Centres data, accounting for 37% of the inflows, followed byMaharashtra(27%) and Karnataka (13%).

The government has been seeking to bolster FDI especially in the manufacturing sector and some of the investments are related to companies such asApples vendors andSamsungpumping in funds to set up bigger production facilities for mobiles and electronics goods.

The government has identified close to 1,000 companies and is working withInvest Indiato tap companies that are seeking to diversify their production bases.