India’s balance of payments will be “very strong” as a result of substantial export growth and a decrease in imports, Minister Piyush Goyal of Commerce and Industry said on Monday.
He said that “good” green shoots are viewable in the economic system and that export markets have also shown “good” transformation.
“In July, we are now at 91% of the level of exports in July 2019. Imports are still at about 70-71 percent of the level of July 2019. So, generally, our balance of payments this year is going to be very strong, which is why we feel confident that the Indian industry will see opportunities for itself and potential of development” Minister said in the FICCI webinar.
As our producers today just become traders, we have to reduce our dependency on imports. We will reinvigorate our manufacturing industry by targeted countries, in particular China, by using pollution as a state policy. It is also a good move to investigate all problems with import evaluations, incorrect classification of goods, the hiding of country of origin by FTA countries, export repatriations, etc. And the reliance on imports must be reduced because today producers are just traders.
The Reserve Bank of India has prohibited banks from routing funds from borrowers’ term loans into their current accounts in an attempt to avoid misuse of bank funds. It is agreed not to move money disproportionately from term loans into corporate accounts in other banks by corporations and major lenders. The RBI has also prohibited banks from opening current accounts to clients with credit facilities offered by other banking companies under the form of cash credit (CC) or overdraft (OD). The banks – primarily PSU banks – are now in charge of the banks ‘current accounts that, in the effect, cannot transfer money to others for other purposes from other banks’ current accounts
The fourth straight month of June saw Indian export declines as shipments of main segments, such as petroleum and textiles, declined, but for the first time in 18 years the country has surplus imports with a stiffer decline of 47,59%.
