Year: 2025
Type: article
Abstract: Exports play a pivotal role in India’s international trade and overall GDP growth. As export credit is classified under the priority sector, scheduled commercial banks consistently extend credit to the export sector, leading to a steady annual increase in outstanding export credit. This study investigates the extent to which export credit contributes to the value of exports in international trade. Using monthly data on export credit and export value from April 2008 to March 2025, the analysis employs Autoregressive Distributed Lag (ARDL) short-run and long-run models to assess the relationship. The findings demonstrate that export credit is an essential factor of export value, with a stronger influence in the long run than in the short run. Additionally, export performance is positively affected by inflation and negatively impacted by the exchange rate. The findings suggest that further enhancement of commercial banks’ export credit under the priority sector is essential to strengthen India’s international trade balance.
DOI: 10.14419/sms0zs30
Authors: G Narayana Swamy, Shaik Saleem
Institution: Vellore Institute of Technology University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4415245216
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