Home / Knowledge / News / Apparel/Garments / Requisition to exempt exporters from Base Rate Model
Requisition to exempt exporters from Base Rate Model
23
Jun '10
Tirupur Exporters Association (TEA) President - Shri.A.Sakthivel said that he has sent a letter to Shri. Pranab Mukherjee, Hon'ble Union Minister of Finance requesting to exempt exporters from base rate model and advise to provide the export credit at a concession rate of 7%.

We wholeheartedly thank the Hon'ble Finance Minister for taking various prudential measures for the past 1½ years and steered our economy to record 7.2% growth in GDP in the year 2009-10 and this achievement has come at a time when other developed countries are struggling to show 3% growth in GDP. The country has successfully overcome the effect of the global economic slowdown and we expect the GDP will grow at 8.5% during fiscal 2010-11.

Sir, RBI has proposed to implement the Base Rate Model on 1st July 2010 after replacing the current Benchmark Prime Lending Rate (BPLR) and afterwards the actual lending rates charged will be Base Rate plus other specific changes, which will increase the interest rate costlier to exporters, as the concessional export credit facility available (Benchmark Prime Lending Rate – 2.5%) under BPLR system to exporters will be withdrawn.

Our concern is that in spite of concessional facility extended to exporters in the interest rate, the credit for export is still higher than international benchmarks and straight away reducing our competitiveness in the global market. The bank interest rate available to our main competitors in China is only 5.23%.

In view of this, we request the Hon'ble Finance Minister to kindly advice the RBI to exempt the exporters from the proposed base rate system and provide the export credit at a concession rate of 7%.

Tirupur Exporters Association (TEA)


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

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 ...

Mike Hoffman
Gildan Activewear SRL

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

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X