Home / Knowledge / News / Low cost credit window for MSME to impart competitiveness: FIEO
Low cost credit window for MSME to impart competitiveness: FIEO
09
Nov '09
Mr A Sakthivel, President, Federation of Indian Export Organisations(FIEO) while commenting on RBI's data on the decline in non-food credit by banks to 9.7% vis-à-vis 29.1% in the corresponding period last year stated this was only part of the picture as overall fund flow vis-à-vis the previous year was constant.

President, FIEO elaborated that while corporates had mopped up Rs.41,065 crores from the Initial Public offers (IPO's) and Qualified Institutional Placements (QIP's) [ nearly 20 times the previous year], the MSME export sector while is largely dependent on banks had to bear the brunt of recession due to lack of demand stimulus and higher cost of credit from banks.

Further, companies and banks are earning 3.5% to 4% while parking funds with Mutual Fund Companies which in turn are lending to companies with a mark-up of 50 to 100 basis profit. The cost advantage to large corporates is between 250 to 300 basis points vis-à-vis the MSME's who depend on bank credit exclusively.

The FIEO Chief explained that as the Government is reviewing the situation at present as was stated in the 'Indian Economic Summit' being held in the capital the time may be ripe to consider a 'low cost credit window' in the current global scenario for the labour intensive MSME export sector for their sustenance.

Federation of Indian Export Organisations (FIEO)

Must ReadView All

Apparel/Garments | On 29th Mar 2017

Indonesian garment exports to remain stable in 2017: API

Garment exports from Indonesia are likely to remain stable this year...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Myanmar CMP garment exports to touch $2.2bn in 2017

Cutting, making and packaging (CMP) garment exports from Myanmar are...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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
March 2017

March 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