Home / Knowledge / News / Textiles / FIEO seeks extension of interest subvention for handlooms
FIEO seeks extension of interest subvention for handlooms
02
Mar '12
The Federation of Indian Export Organizations (FIEO), the apex body of Indian export promotion organizations, has asked the Government to extend the Interest Subvention scheme for handlooms, handicrafts, carpets and micro, small and medium enterprises (MSMEs) for another year.

The interest subvention scheme was first introduced by the Government in 2009-10 for exporters of eight labour intensive sectors to help the industry cope with negative impact of global economic crisis.

However, the number of sectors eligible for the scheme was decreased to four in 2010-11 and the scheme was discontinued in the 2011-12 Budget. The scheme was once again introduced through a Rs. 17 billion package for exporters in October 2011.

Under the scheme, exporters of handlooms, handicrafts, carpets and MSMEs can avail loans from public sector banks at 2 percent discount to the existing rate of interest. The difference in interest is later on reimbursed by the Government to the banks.

Mr. M Rafeeque Ahmed, President of FIEO, told fibre2fashion, “Indian exports have already come down and any withdrawal of interest subvention will definitely affect Indian exports.”

“In the pre-Budget recommendation, we have suggested continuation of the interest subvention scheme for the next one to improve exports. We have asked for making the scheme applicable to all the exports and not just continue for MSMEs and the three sectors of handicrafts, handlooms, and carpets,” he informs.

Explaining the rationale, he says, “We have put across such a request considering the current market situations and the Euro debt crisis. Unless we are rightly priced, pricing being a great factor, nobody will buy from India. The pricing cannot be made competitive without interest subvention, as the prevailing domestic interest rates are high.”

Talking about other suggestions made by the FIEO for the forthcoming Budget, he reveals, “We have recommended removal of the service charge, which is being levied on commission paid to overseas agents. We have said this is not sustainable and non-residents are not liable to pay taxes, as per the rule.”

Fibre2fashion News Desk - India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Textiles | On 23rd Jan 2017

MagnaColours develops new sustainability standard

MagnaColours, manufacturer of printing inks and ink bases, discharge...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

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

Marten Alkhagen
Swerea IVF AB

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

Sonam & Paras Modi
SVA

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

Mike Hoffman
Gildan Activewear SRL

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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