The center proposes a credit card similar to the KISAN Credit Card for Electronic Tail Exporters: Report

Economic times stated that the center is developing a proposal that aims to meet short -term credit needs for e -commerce exports, as well as providing support to those who maintain warehouses abroad, according to economic times. The Ministry of Commerce has proposed a credit card similar to the KISAN Credit Card, which is expected to reduce borrowing costs for exporters from the current 15-18 %.

Officials note that a memorandum for the approval of the spending financing committee is underway, as the government aims to enhance stagnant exports, which amounted to 437.42 billion dollars in the fiscal year 25, with a marginal increase of 0.08 % of the 24th fiscal year.

These initiatives come at a critical time, as the United States recently ended the transactor from the customs duties of low -value imports from China and Hong Kong. In 2024, more than 1.4 billion buckets worth 64.6 billion dollars to the United States, with nearly 60 % of China.

The report quoted an official: “We are working on a larger plan to enhance e -commerce exports to solve its financial case,” adding that these measures constitute part of the task of promoting the export of 2,250 rupees in the fiscal year budget 26.

E-commerce exports in India, which have been facilitated through fast mail and postal mail roads, are estimated at about 1.5-2 billion dollars annually, with total exports, including direct shipments, which are linked to $ 8 billion.

The proposed plans can extend to a period of five to six years, providing stability and support that affects the need for the sector. The government plans not only to reduce borrowing costs but also to expand support for exporters with warehouses abroad, which mimics the successful strategies of China.

Trademark initiatives also depend on the agenda to enhance India’s competitive advantage in global markets. Moreover, the continuous discussions between the Ministry of Trade and Industry and the Indian Reserve Bank are aimed at simplifying banking settlements under the export data processing system and monitoring (EDPMS).

The current system, which requires matching all export payments against shipping bills, represents challenges for exporters who deal with low -value charges with a high -frequency of the typical electronic trade.

These challenges are exacerbated by EDPMS requirements, as exporters must confirm the payment by matching export payments with shipping bills.

The exporters said, “This was an ongoing issue, especially for those who participate in e -commerce, because it often includes high frequency shipments. The proposed measures seek to reduce these difficulties and enhance operational efficiency.

The proposed credit card system, which is inspired by the KISAN Credit Card, aims to provide a financial pillow by providing lower interest rates and flexible payment options, which are necessary in maintaining the validity of small and medium -sized institutions that work in exports.

Through these strategic initiatives, the Indian government hopes to revitalize the e -commerce export sector and put it as a strong shareholder in the national economy. As part of the largest export promotion task, these efforts reflect a concerted boost to update and improve the scene in India.