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Saturday, 14 March 2020

Indian apparel industry demands extension of interest equalisation scheme

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Indian apparel industry has requested the Government to extend interest equalisation scheme on pre- and post-shipment rupee export credit for garmenting exporting units.

The scheme is in force from 1 April 2015 for five years and is expiring on 31 March 2020.

It is pertinent to mention here that interest equalisation rate at 3 per cent on pre- and post-shipment rupee export credit was existing for all labour-intensive categories of exporting units, including knitwear exports sector. Subsequently, the rate was increased by 5 per cent for MSMEs from 2 November 2018.

Raja M. Shanmugham, President, Tirupur Exporters Association (TEA), said that he has appealed to Union Minister of Finance to advice RBI to extend the scheme for at least another 3 years for all categories of knitwear exporting units mainly to enhance the competitiveness of knitwear exports and also to have a level-playing field in the global market.

A representation in this regard has also been sent to Piyush Goyal, Commerce Minister, Smriti Irani, Textile Minister, and other senior government officials.

“We are already vulnerable, and in case this scheme doesn’t extend, vulnerability will increase and we will face tough competition even from emerging markets,” Raja said.

Source :- https://in.apparelresources.com/