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EEPC India proposes cheaper export finance for MSMEs

Cheaper advances for MSMEs, a dedicated PLI scheme for MSME sector, guidelines for Rupee trade with Russia and alternative payment mechanism for Myanmar were some of the key suggestions by EEPC India during a meeting of the Board of Trade. Participating in it, EEPC India Chairman Mahesh Desai also proposed to withdraw export duty on selected steel items as it will be especially helpful for the MSMEs which have a significant contribution in India’s engineering exports.

He cited the feedback received from member exporters and noted that imposition of export duty will dampen Indian interest and endanger the survival of Indian stainless-steel (SS) producers.

He requested the government to relook at the rates under RoDTEP and give full rebate on the taxes that still remain in the export production chain and recommended to include steel sector under RoDTEP as steel is the most widely used raw material in the engineering industry.

He also highlighted that when export incentives are being phased out, export finance has become increasingly important, especially for the MSMEs. The EEPC India chairman suggested that MSMEs should be offered advances at a rate that would be lower than Marginal Cost of Funds Based Lending Rate(MCLR) and Repo Linked Loan Rate (RLLR) so that they don’t run out of funds and can sustain business.