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Extension of interest subvention to boost MSME exports: FIEO

Extension of interest subvention will give a boost to the Micro, Small and Medium Enterprise (MSME) exporters who are impacted by the recessionary conditions in the global markets, President, Federation of Indian Export Organisations (FIEO), M Rafeeque Ahmed said Monday.

While commenting on the expansion in the interest-subvention scheme including 6 tariff lines for textiles including made-ups and 101 tariff lines in case of engineering goods besides the 134 lines that were included in January 2013, President, FIEO, stated that this would provide some leeway to the MSME export sector who are impacted by the recessionary conditions in the global markets affecting exports of Engineering and Textiles, both of which declined by about 4 percent in last fiscal.

Ahmed stated that the six tariff lines for textiles included; Blankets and Traveling Rugs; Bed Linen, Table Linen, Kitchen Linen; Curtains including Drapes and Blinds; Sacks and Bags, Awnings and Sun-blinds; other made up Articles etc.

Given that the turnover of the textile industry is pegged at USD 55 billion at current prices with exports accounting for 36 percent, India ranked third in global textile export, coming up behind China and the European Union. 

Being intensively employment oriented, the extension of interest subvention may come as the much needed relief which was announced in the annual FTP announced in April this year, said Ahmed.

President, FIEO stated that the 12th Plan document for boosting engineering exports inter-alia suggested reducing credit costs as a necessary per-requisite for exports. 

Coverage of more Engineering products for interest subvention is a step to reduce cost of credit and impart competitiveness to Engineering exports which dominate export basket.