Australian SME exporters with interest in the Indian market can now proceed with their plans with the possibility of financial assistance. This is the good news from the State Bank of India (SBI) as it enters a new agreement with Australia’s Export Finance and
Insurance Corporation (EFIC).
Constrained bank lending slows down export activities to India
At present, India is one of the most important export markets for Australian SME exporters. However, the emerging market turmoil caused Australian banks to cut their lending to India by as much as 40% in the past years.
Alex Fernandez, EFIC’s head of Alliance & Product, SME, said,
“With a recent tightening in domestic lending to India, many Australian SME businesses are struggling to access finance to fund their overseas activities in the country.
This new collaboration will provide support to SME exporters operating in India, allowing them to take advantage of exporting opportunities and grow their business overseas.”
India’s response to export funding constraints experienced by Australian SME exporters
The agreement between EFIC and the SBI makes it easier for Australian SME exporters with interests in the Indian market to secure the financial support they need to export to and operate. It provides a range of financial solutions helping Australian SME exporters to succeed with their business engagement in India.
Part of the financial solution provided by SBI includes:
- Insurance products
With this offer of financial support, SBI is optimistic more SME exporters will proceed with their plans to engage business in India.
BRi as a reliable logistics partner for Australian exporters to India
Aaron believes that this is a great initiative for Australian Exporters. Further, he is excited to share his freight forwarding expertise to those wishing to export goods from Australia to India.
“We are well positioned to help with the logistics of exporting goods from Australia to India. Our company owned infrastructure allows us to deliver multi-country distribution operations from anywhere around the globe. Talk to me at 1300 348 828. We are glad to help.”
More about the State Bank of India
SBI is the largest domestic bank in India. It has 22% share of the domestic Indian banking market with the Indian Government as its major shareholder.
It has over 17,000 branches in India and another 190 offices in 36 countries across the world.
News source: http://www.tandlnews.com.au/2014/07/22/article/state-bank-of-india-to-assist-australian-sme-exporters-through-efic/