MODIFI, a top fintech company focusing on trade finance, recently teamed up with the Federation of Indian Export Organisations (FIEO) for a roundtable event titled “Bridging the Gap in Export Finance.” This gathering brought together important figures in Indian exporting, including leaders from Bharat Forge, Surya Roshni, Patanjali, and Red Tape. They discussed the changing world of export finance and the urgent need for alternative financial solutions.
Dr. Ajay Sahai, the Director General and CEO of FIEO, shared his insights on the challenges Indian exporters currently face. He highlighted a crucial issue: access to affordable credit. He remarked, “The biggest challenge for exporters today is the flow of credit. High deposit rates in India make traditional credit expensive. Thus, alternative options like factoring are essential.” The government is working on improving credit flow and promoting factoring, which could be a game changer for many businesses.
Factoring, while popular in many countries, remains underutilized in India. Dr. Sahai pointed out that it contributes only 0.2% to India’s GDP, compared to 4% in Brazil and 3.2% in China. He believes that with government backing and support from financial institutions, factoring could become a common financing option for Indian exporters.
Ms. Annie Yadav, the Commercial Head of MODIFI India, also spoke at the event. She introduced MODIFI’s innovative trade finance solutions aimed at easing the financial burden on exporters. Her team is focused on reducing barriers and enhancing business growth for Indian companies in the international market.
The event allowed for meaningful discussions among industry leaders, addressing current concerns and identifying growth opportunities. With over 50 delegates from more than 30 companies attending, the atmosphere was one of collaboration and optimism. It was a step toward enhancing access to growth capital for global trade.
Interestingly, the global trend towards alternative financing like factoring is growing. A recent study shows that around 70% of businesses worldwide are considering or already using alternative finance methods. This trend suggests a significant shift in how businesses think about funding and financial health.
In summary, the discussions at this roundtable reflect a broader movement towards innovative financial solutions in India. As the export landscape evolves, embracing methods like factoring may not just support exporters but also strengthen the entire economy. Staying engaged with emerging trends and tools could be key to thriving in today’s global market.
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Source linkMODIFI,FIEO,Export Finance
