The Federation of Indian Exporters Organization (FIEO) has requested the Finance Ministry to cap interest rates on loans to micro, small- and medium-sized enterprises (MSMEs). The apex body of exporters has suggested a cap of seven percent for MSMEs and at 9% for other businesses. FIEO has also suggested the inclusion of export credit under priority-sector lending in the current year’s Budget.
In a recent published statement, FIEO has stated that the latest rise in interest rates has hit Indian MSMEs, mainly in the areas of capital formation and investment, and put forth its requests. The organization has also asked for interest subvention for small businesses until March 2013.
The President of FIEO, Rafeeque Ahmed, had a pre-budget meeting with the Finance Ministry officials in New Delhi on February 3, 2012, to discuss these issues. He also stressed the importance of tax breaks to small businesses, for both direct and indirect taxation.
Click here to read all the points of discussion between FIEO and the Finance Ministry.