Asian Journal of Research in Banking and Finance
Year : 2015, Volume : 5, Issue : 12
First page : ( 109) Last page : ( 116)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2015.00148.0

Impact of Export Credit on the Exports of MSMEs A Study of Ranga Reddy District

Suresh N.

Asst. Professor of Commerce, MVS Government Arts & Science College, Mahabubnagar

Online published on 7 December, 2015.

Abstract

MSMEs contribute forty percent of direct exports from Indian Custom frontiers with a creditable track record of an exponential growth rate in terms of export turnover and margins thereon. Indian MSMEs have shown positive performance with respect to international trade parameters even during the global rescission and evinced their caliber to vanguard economic interests of the country. This led to the adaption of export friendly policies of MSME sector of which concessional export credit is an important measure initiated by the government to meet the working capital requirements of MSMEs and to further their export potential. Thus, it establishes an implicit correlation between the amount of credit deployed and the value of exports in MSME sector. But, how far this correlation holds good has become a major concern owing to the mounting dichotomy between the rates of credit deployment and exports in highly industrialized areas. Ranga Reddy district in the new state of Telangana mirrors one such high density conglomeration of MSMEs where, the amount of export credit generated has been increased by six hundred and seventy percent in the past one decade and whether this has impacted export volumes of MSMEs must be cross checked before corroborating the correlation. It is with this intention a research paper titled “Impact of Export Credit on Exports of MSMEs: A Study of Ranga Reddy District” is proposed with the twin objectives of studying the MSME milieu of and assessing the impact of export credit on the direct exports of MSMEs.

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Keywords

Export Credit, Exports, MSMEs.

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