Ganesh Gupta, President, FIEO while commenting on anticipated unchanged interest rates due to inflationary risks (MSP increase/commodity prices unwinding/fiscal slippage) stated that for the export credit, which was in the priority sector had shown a decline of -2.5 per cent in 2016-2017 and a YOY decline of -8.7 per cent in 2017 needs to be addressed as exports growth is forecasted at 15 per cent in the Union Budget and if that be the case then cost of funds should not act as a deterrent for export business.

FIEO chief stated that RBI data indicates that cost of funds is in the range of 4.24 to 6.11 per cent, whereas return on investments/funds being higher in the absence of robust demand skews business decisions for borrowing from scheduled commercial banks even as they sit on operating profits of as high as 18 per cent with net profits as high as 28 per cent.