>>
Home / Knowledge / News / Textiles / 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

Pic: Roman Romaniuk | Dreamstime.com

Textiles | On 7th Dec 2021

Euro area, EU see expansion in volume of retail trade in October

In October 2021, the seasonally adjusted volume of retail trade...

Pic: Enanuchit | Dreamstime.com

Textiles | On 7th Dec 2021

Transport bodies caution govts against ‘knee-jerk’ reaction to Omicron

World leaders’ knee-jerk reactions to the Omicron variant are putting ...

Pic: Antonio Guillem | Dreamstime.com

Retail | On 7th Dec 2021

US holiday shopping could beat forecast despite inflation, COVID: NRF

The 2021 holiday season appears to be on track to exceed the National ...

Interviews View All

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Switch was not 100% pandemic related

Textile Industry, Head honchos

Textile Industry
Head honchos

Consistency is the first rule of social media

Shivaani Jain,

Shivaani Jain

Established in 2015, Once Upon A Trunk is a one-stop-shop with almost...

Dhirubhai & Arvind Shah,

Dhirubhai & Arvind Shah

It supplies synthetic fabrics to top international brands like M&S,...

Chini Chouhan,

Chini Chouhan

Founded by Chini Chouhan, her eponymous brand specialises in women's...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Silke Brand-Kirsch, Glatfelter

Silke Brand-Kirsch
Glatfelter

Glatfelter is a leading global supplier of engineered materials. <b>Silke...

Bani Pasricha,  Label - Bani Pasricha

Bani Pasricha
Label - Bani Pasricha

An Indian fashion-designer and a recipient of one of the most prestigious...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha &amp; Jigar blends India's unique handcrafts...

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

Leave your Comments


December 2021

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


Advanced Search