Raja. M. Shanmugham, President said he has appealed to Nirmala Sitharaman, Hon’ble Union Minister of Finance and Minister of Corporate Affairs to announce extension of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit for another two years to make knitwear garment exporting units, particularly MSMEs to enhance their competitiveness in the Global Market and sustain in the business.
He said 5 percent Interest Subvention on Pre and Post Shipment Rupee Export Credit was available for MSMEs and 3 percent Interest Subvention for Non-MSMEs up to 30th September 2021 and afterwards, no extension have been announced.
Raja. M. Shanmugham said when our exporting units are not having a level playing field in the Global Market compared to our competing countries like Bangladesh, Vietnam and Cambodia, the extension of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit with retrospective effect from 1st 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. He further said the units have been taking efforts to come out of the impact caused due to First and second wave of COVID Pandemic and need this financial support to come out of the crisis.
