Home / Knowledge / News / Textiles / Govt considering interest subsidy for textiles sector
Govt considering interest subsidy for textiles sector
01
Jul '15
The commerce ministry is considering interest subsidy benefits for textile sector including garments to arrest falling exports, according to media reports.

The interest subvention scheme of 3 per cent ended on March 31, last year. Under the interest subvention scheme exporters get loans at affordable rates.

The Federation of Indian Export Organisations (FIEO) has been demanding the extension of the interest subvention scheme with retrospective effect from April 2014.

"Cost of credit is important for textiles sector as the exporters are facing stiff competition from countries such as Bangladesh and Vietnam. Government should give the interest subsidy benefits to them," FIEO director general Ajay Sahai said.

As textiles sector accounts for about six per cent of the country's total exports, there is a need to support this sector by providing credit to exporters at affordable rates, an official said.

Commerce secretary Rajeev Kher has recently said that the ministry has completed discussions with the revenue department and soon they would take the decision on the issue.

The proposal would also go to the Union cabinet for its approval.

In 2014-15, textiles exports grew by 12.28 per cent year-on-year to about $17 billion.

Loans at subsidised rates would help exporters to boost shipments as the country's overall exports were in the negative zone during the last six months. India's exports shrank by about 20.19 per cent in May to $22.34 billion, falling for the sixth straight month. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Marten Alkhagen
Swerea IVF AB

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search