How Trade Finance for SMEs Fits into Modi and Biden's Strengthened Partnership

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Aug 23, 2023, 07:14 ET

NEW YORK, Aug. 23, 2023 /PRNewswire/ -- A late June visit by India's Prime Minister Narendra Modi to the United States to meet with U.S. President Joseph R. Biden, Jr. affirmed the two countries' investment in one another, as bilateral trading partners and two of the world's largest economies with mutual interests in some of the most urgent global issues of today.

The meeting between the two leaders welcomed collaboration in areas that include semiconductor production, securing mineral supply chains, clean energy, pharmaceuticals, defense, space, aviation, digital infrastructure and greater support for small and medium-sized companies.

The full rundown of shared efforts by the two nations is outlined in the Joint Statement from the United States and India, which puts the willingness and commitment of both administrations to work together on full display.

With the two leaders vouching to increase their support for SMEs, trade finance, which many smaller and midsize companies opt for to improve their cash flow, will remain an important factor in smoothing transactions between the two countries. SMEs, which can have less established operating histories and may be turned away from traditional banks on this premise, commonly seek out trade finance offered by non-bank financial corporations; this alternative financing – which comes without the strict regulations that are tied to conventional banking – is known to be more flexible and conducive to SMEs' needs.

The loosening of trade barriers and renewed commitment by Modi and Biden can have great economic benefits for the two countries and the larger global market. Trade finance, the centuries-old financial arrangement that much of global trade still depends on, will be here to help ensure payments, move goods, and provide support for all the many crucial small and medium businesses that make the world turn.

About Tradewind Finance

Founded in 2000, Tradewind Finance maintains a network of offices all over the world, including Bangladesh, Brazil, Bulgaria, China, Hong Kong SAR, Hungary, India, Pakistan, Peru, Turkey, UAE, and the USA as well as the headquarters in Germany. Combining financing, credit protection, and collections into a single suite of trade finance products, Tradewind brings streamlined, flexible, and best-in-class services to the world's exporters and importers.