Home / Knowledge / News / Textiles / 'Do not withdraw 4% interest rate subvention' - CITI
'Do not withdraw 4% interest rate subvention' - CITI
30
Sep '08
While the Reserve Bank of India (RBI) has decided to withdraw the 4 percent interest rate subvention benefit granted to the textile exporters from today, the Ministry of Textile has proposed to the Union Cabinet for an extension of the scheme till March 31, 2009.

This benefit was provided to the Indian exporters in April when the domestic market was reeling under the pressure of rupee appreciation and profits of the exporters plummeted. But due to the recent 12 percent depreciation in Indian currency against dollar, the benefit is being withdrawn by the Centre.

However, the textile industry has demanded extension of the interest rate subvention benefits as the industry has been suffering from various other problems such as high raw material costs and decreased demand from the US.

In an exclusive interview with Fibre2fashion, DK Nair, Secretary General of Confederation of Indian Textile Industries (CITI) stated, “Government had announced two incentives in the wake of rupee appreciation - a 4 percent subvention of interest rates on export credit and an increase in draw back rates. However, interest rates on packing credit in India were higher than those in all competing countries and the draw back rates had not taken into account all the taxes paid on exported goods.

We have conveyed to the Government that state level duties are still not reimbursed to exporters and interest rates in India have increased substantially in recent months and therefore the draw back rates should be increased by 2 percent from the original rates and the interest subvention should be continued. We understand that Textile Ministry has supported our requests, but the Finance Ministry has not yet announced the continuation of the measures.”

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

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

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Lynda Kelly
Suominen Corporation

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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