Apparel industry has urged the Government for extension of Interest Equalisation Scheme (IES) on Pre and Post Shipment Rupee Export Credit for another two years.
It will make garment exporting units, particularly MSMEs, enhance their competitiveness in the global market and sustain in the business.
The 5 per cent Interest Subvention on Pre and Post Shipment Rupee Export Credit was available for MSMEs and 3 per cent Interest Subvention for non-MSMEs up to 30 September 2021.
Raja M. Shanmugham, President, Tirupur Exporters’ Association (TEA) appealed for this in a letter written to Piyush Goyal, Union Minister of Textiles, Commerce & Industry.
He added when exporting units are not having a level playing field in the global market compared to competing countries like Bangladesh, Vietnam and Cambodia, the extension of this scheme with effect from 1 October 2021 for another two years is very much required and this will help the exporting units to work out their costing in advance and take up the orders based on this.
As the competitiveness is a major requirement for the MSMEs (95 per cent of apparel exporting units are in MSME) to sustain in the global market at a time when India’s competing countries are enjoying the duty-free status in EU and UK markets, it is increasingly becoming necessary for MSMEs to have a level playing field and strive to sustain in the business.
