Govt Needs To Provide Export Credit to SME Sector At 7%: FIE

Govt Needs To Provide Export Credit to SME Sector At 7%: FIEO

Centre should offer export credit to the small and medium enterprise (SME) segment at 7% and others at 9% and immediately introduce interest subvention from April 1, said Mr Ramu S Deora, President, Federation of Indian Export Organisations (FIEO). The Indian government needs to maintain the distinction between exports and domestic finance for export momentum, said FIEO.

FIEO chief feels that the Reserve Bank of India's move to surge interest rates by 25 basis points has lead to the worst fears of the export sector the Monetary Policy Review.

In the last 15-months time, the key policy rates have risen 10 times from 3.25% to 7.5% and it has affected the growth momentum. The Index of Industrial Production (IIP) has declined to 4.4% during April as compared to 8.8% in March. The Fourth Quarter Gross Domestic Product (GDP) has plunged to 7.8% as compared to 8.3% witnessed in the third quarter.

Source: news.indiamart.com