Expansion in interest subvention will aid MSMEs: FIEO | SupportBiz

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Expansion in interest subvention will aid MSMEs: FIEO

 
The expansion in the interest subvention scheme would provide some leeway to the Micro, Small and Medium Enterprises (MSMEs) in the export sector, who are impacted by the recessionary conditions in the global markets affecting exports of Engineering and Textiles, both of which declined by about 4 per cent in the last fiscal, said M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO).

The interest-subvention scheme includes six tariff lines for textiles including made-ups and 101 tariff lines in case of engineering goods besides the 134 lines that were incorporated in January 2013.

FIEO Chief stated that the six tariff lines for textiles included, blankets and travelling rugs; bed linen, table linen, kitchen linen; curtains including drapes and blinds; sacks and bags, awnings and sun blinds; other made up articles etc.

Given that the turnover of the textile industry is pegged at US $55 billion at current prices with exports accounting for 36 per cent, India ranked third in global textile export, behind China and the European Union. Being intensively employment oriented, the extension of interest subvention may come as the much needed relief which was announced in the Annual FTP in April this year, Ahmed added.

The President, FIEO also said that the 12th Plan document for boosting engineering exports inter-alia suggested reducing credit costs as a necessary pre-requisite for exports. Coverage of more engineering products for interest subvention is a step to reduce cost of credit and impart competitiveness to engineering exports which dominate export basket.