In a recent episode of the Confederation of Indian Industry (CII) podcasts, Mark Abrams, MD, and Global Head of Trade & Receivables Finance at Trade Finance Global (TFG), engaged in a thought-provoking conversation with Jayant Sriram, an ex-journalist. The episode discusses crucial aspects of international trade and finance, shedding light on challenges and innovative solutions shaping the industry.

Let’s take a look into what they discussed: 

  • Challenges in Global Value Chains: The discussion addresses the challenges of ensuring that global value chains are both inclusive and resilient. One major challenge discussed is the complexity and depth of supply chains, and the need for solutions to verify and monitor them at a deeper level.

  • Role of Trade Finance Solutions: Emerging technologies in trade finance are highlighted as tools to address supply chain challenges. Digitalisation is mentioned as a means to verify supply chain systems, track environmental impact, implement detailed KYC processes, and provide financial incentives for ethical practices.

  • Inclusivity for SMEs in Commodity Trading: Trade finance is seen as a key player in promoting inclusivity, especially for small and medium-sized enterprises (SMEs) in the commodities sector. Tailored financial solutions, risk mitigation tools, and freeing up working capital are discussed as ways to empower SMEs.

  • Aligning Trade Finance with Responsible Business Conduct: The importance of sustainability and ethical considerations in global trade is emphasised. The discussion calls for comprehensive regulations and standards in the trade finance industry to ensure responsible business conduct.

  • Innovative Financing Structures: Examples of innovative financing structures are shared, such as TFG Distribution Finance, which attracts more capital into the market and allows mid-market traders to fund smaller producers, promoting inclusivity.

  • Technology Trends Impacting Trade Finance: The podcast concludes with a discussion on emerging trends in technology that will impact trade finance and commodity finance sectors. The importance of alternative financing in the face of changing macroeconomic and geopolitical circumstances is highlighted. Digitalisation is emphasised as a positive force, with technologies like agri-silo monitoring, drones, and automation improving efficiency and freeing up time for more strategic activities.