Hike in interest subvention to boost textile export – SIMA

August 01, 2013 - India

The government has announced increase in the rate of interest subvention from 2% to 3% to the exporters belonging to various sectors. It has been mentioned that all pending claims would also be cleared immediately.

Welcoming the decision, Mr S Dinakaran, Chairman, The Southern India Mills’ said that the decision to increase the interest subvention from 2% to 3% is timely for all the sectors in the backdrop of balance of payment issues. 

He has specifically mentioned that sectors announced for the benefit would include handlooms, handicrafts, readymade garments, made-ups coming under the textile value chain.  The salient feature of this announcement, Mr.Dinakaran said, is the widening of coverage of benefit to all exporters of micro and small enterprises irrespective of the export sector, especially labour intensive sectors.

Mr.Dinakaran has stated that since the textile industry is back to normalcy after severe recession in 2010-11, it can contribute sizably for the country’s exports.

SIMA Chief has thanked Hon’ble Union Commerce & Industry Minister and Union Finance Minister for increasing the interest subvention.  Mr.Dinakaran has also thanked the Hon’ble Union Minister of Textiles for his concerted efforts to increase the textile exports by 30% in one year.