Mr A. Sakthivel, President, Federation of Indian Export Organisations (FIEO) has written to the Finance and Commerce Ministers highlighting the concern of the exporters of textiles including garments, leather, gems and jewellery and marine sectors who have been deprived the benefit of 2% interest subvention which has been extended for sectors such as handicrafts, handloom and SME sectors.President, FIEO in his request highlighted that many of these sectors are still expecting negative growth in 2009-2010 and few of them may have shown a positive growth but that too on a very low base.
FIEO Chief added that export sector is still facing demand compression coupled with price war on account of aggressive prices being offered by our competing countries benefiting from huge stimulus provided to them.
Mr A Sakthivel added that sectors such as textiles (including Garments), leather, gems and jewellery and marine sectors are highly employment intensive sectors with very high capital employment ratio and Government should continue to provide them interest subvention both with a view to promote export as well as to encourage additional employment in these sectors.
FIEO also reiterated its commitment to extend the benefit of interest subvention to merchant exporters also who may be classified as SME based on the investment in equipment but RBI notification at present only covers manufacturers with a ceiling of Rs 10 crores on investment in plant and machinery.
Federation of Indian Export Organisations