This article was first published on BFSI.com from The Economic Times: here.
Supply chains are not generally that mobile and capital intensive products are not necessarily easy to source from elsewhere.
In terms of China itself, there is some switching of supply out of China to other countries, and we also note that many Chinese businesses are investing in new production facilities across Asia which would bypass the various restrictions.
Q. How is the emerging markets’ growth concern for trade finance?
Trade finance is needed for growing companies in order to provide working capital for both importers and exporters. Growth is an important ingredient in a healthy market, as it requires finance and trade finance is low cost, simple, and transactional and exactly meets the needs for both importers and exporters.
Whilst some emerging markets are slowing, there are still impressive economic growth rates across the world.
Q, How do you view the slowdown in the Indian economy in line with trade finance?
India’s slow down is only from very fast growth to fast growth.
But with a large number of younger people joining the workforce in the next few years, India has to keep moving forward at this pace at least – and trade finance is here to help. Whilst domestic demand will continue to develop and drive economic growth, export-led growth is healthier and more efficiently drives prosperity across the economy.
Q. What is your unique proposition in India & expansion plans?
We provide a transactional trade finance product that is exactly designed to meet the needs of the Indian exporter. It is simple, collateral-free and compatible with banking and foreign exchange regulations.
For us, India is a great market, forward-thinking and open to embrace modern and digital ways of doing business. It is a power house in the Asian market and is the country to watch.
We completed a long pilot project to ensure we have understood our client needs, get our pricing and product design correct and also establish strategic relationships with important market players. From here, we expect to grow quickly and to help Indian exporters to grow by providing them with the working capital that they need.
Q, What is the growth potential in India?
The potential is very high. Indian exports are around $250 billion across both services and goods. Our trade finance solutions work for both kinds of export – and we are optimistic that a collateral-free trade finance product is much needed and provides a competitive source of working capital for exporters. We expect to be in India for the long term.