Tirupur Exporters’ Association (TEA) has appealed to Nirmala Sitharaman, Union Minister of Finance and Minister of Corporate Affairs, to announce extension of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit for another two years to help knitwear garment exporting units, particularly MSMEs, enhance their competitiveness in the Global Market and sustain in the business.
Raja M. Shanmugham, President, TEA said that 5 per cent Interest Subvention on Pre and Post Shipment Rupee Export Credit was available for MSMEs and 3 per cent Interest Subvention for non-MSMEs up to 30 September 2021 and afterwards, no extension has been announced.
“When our exporting units are not having a level playing field in the global market compared to our competing countries like Bangladesh, Vietnam and Cambodia, the extension of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit with retrospective effect from 1 October 2021 for another two years is very much required and this will help the exporting units to work out their costing in advance and take up the orders based on this,” he said.