The Indian clothing sector wants the IES on pre- and post-shipment rupee export credit to be extended
8th October 2021, Mumbai:
The Indian garment sector has requested the government to extend the Interest Equalisation Scheme (IES) on Rupee Export Credit Pre and Post Shipment for another two years. It will help garment exporting businesses, particularly SMEs, improve their worldwide competitiveness and stay in business.
MSMEs received a 5% interest subsidy on pre-and post-shipment rupee export credit, while non-MSMEs received a 3% interest subsidy till September 30, 2021.
In a letter to Piyush Goyal, Union Minister of Textiles, Commerce & Industry, Raja M. Shanmugham, President, Tirupur Exporters' Association (TEA), pleaded for this.
He added that because exporting units do not have a level playing field in the global market when compared to competing countries such as Bangladesh, Vietnam, and Cambodia, the extension of this scheme for another two years, beginning October 1, 2021, is critical.
This will allow exporting units to plan ahead of time and take orders based on their costs.
Because competitiveness is a major requirement for MSMEs (which account for 95% of apparel exporting units) to survive in the global market at a time when India's competitors enjoy a duty-free status in the EU and UK markets, it is becoming increasingly important for MSMEs to have a level playing field and strive to stay in business.
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