Home / Knowledge / News / Apparel/Garments / GEA seeks restoration of interest subvention
GEA seeks restoration of interest subvention
07
Jul '11
Garments Exporters Association has demanded extension of interest rate subvention facility on export credit to labours intensive apparel exporters.

In a statement, Garments Exporters Association, Executive Secretary, Mr Surinder Anand has requested the Government to restore interest rate subvention scheme of 2 percent points on Pre and Post Shipment Export Credit to garment sector of the textile industry. He pointed out that interest rate subvention was earlier granted to labour intensive garment sector but subsequently withdrawn during the last Budget proposals on 31.03.2011.

The withdrawal of the interest subsidy along with recent steep and frequent hike in the interest rate has substantially increased the rate of pre and post shipment on export finance. The export credit as a percentage of net banking credit has also declined. Mr Anand has expressed the fear that rising interest rate would make the garment exports uncompetitive in overseas markets which are already suffering from worldwide recession and global economic uncertainties.

Mr Anand pointed out that the problem of finance is comparatively more acute for the small scale garment exporting sector. It is therefore, essential that adequate facilities of Bank Credit both in terms of long term requirement and working capital should be provided to the exporters. The interest rate for export credit should be lowered as high interest rate increase production as well as transaction costs of exporters.

Mr.Anand further pointed out that the Garments Exporters are going through a serious crisis which is threatening their very existence. The increasing input cost, tight credit policy and high interest rate, severe liquidity crunch, rigid and outdated labour laws, poor infrastructure and high transaction cost, high power cost and frequent power cuts and increasing cost of wages are some of the difficulties being faced by exporters which should be mitigated to the extent possible and a long term solution should be finalized for the efficient functioning of exporters, said Mr Anand.

Garments Exporters Association

Must ReadView All

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Courtesy: Walmart

Apparel/Garments | On 18th Jan 2017

Walmart to create 34,000 new jobs in the US

The world’s biggest retailer and also the biggest US private sector...

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search