India Invites G20 Endeavors to Reduce Widening Trade Finance Gap
Recently, an international conference on the cooperation on trade finance was conducted in Mumbai among the G20 member countries on March 28th. The first G20 Trade and Investment Working Group (TIWG) meeting under India’s administration with Sunil Barthwal, Secretary, Department of Commerce was focused on G20’s cooperation to help decrease the widening trade finance gap.
At the International Conference on Trade Finance, organized by the Export Credit Guarantee Corporation of India (ECGC) and India’s EXIM Bank, Mr. Barthwal stated, “Trade finance gap is enlarging. According to the reports by ADB, the gap in 2018 was $1.5 trillion which now increased to $2 trillion.”
Delegates from the G20 member nations, industry, and academic specialists from across the world became a part of this conference emphasizing promoting an exchange of ideas & opinions in the area of trade finance.
Perceiving that it was an appropriate time to talk about the issues facing trade finance, the Commerce Secretary highlighted the significance of figuring out the most suitable solutions.
The members of the penal talked about the role that banks, financial institutions, development financial institutions, and export credit agencies could play to distinguish the gaps and resolve the difficulties in the trade finance sector amidst the dubious global trade landscape.
The requirement of speeding the digitization in the trade as well as the incorporation of fintech solutions to improve an access to trade finance was also focused on.
The Commerce Ministry stated, “Digitization of international trade is perhaps a constructive solution towards witnessing cost reduction in trade and trade finance. The challenges to be considered in digitizing trade were distinguished as global cooperation in coordinating definitions, guidelines, and data sharing across the borders digitally.”
The experts recommended that all countries should initiate to incorporate enabling regulations in the next upcoming years to gain paperless international trade.