TEA advocates for a two-year extension of the IES on pre-and post-shipment rupee export credit
01 December 2021, Mumbai:
The Tirupur Exporters' Association (TEA) has petitioned Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs, to extend the Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit for another two years in order to assist knitwear garment exporting units, particularly MSMEs, improve their competitiveness in the global market and stay in business.
According to Raja M. Shanmugham, President of the TEA, a 5% interest subsidy on pre-and post-shipment rupee export credit is available for MSMEs and a 3% interest subsidy is available for non-MSMEs till September 30, 2021, beyond which no extension has been declared.
"When our exporting units don't have a level playing field in the global market compared to our competing countries like Bangladesh, Vietnam, and Cambodia," he said, "the extension of the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit with retrospective effect from 1 October 2021 for another two years is very much needed, and this will help the exporting units work out their costing in advance and take up orders based on this."
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