Knitwear exporters heaved a sigh of relief on hearing the announcement about the one per cent increase in the rupee export credit interest subvention rate.

Less than 48 hours ago, these exporters had expressed their disappointment over the 2013-14 monetary policy announcements.

Exporters then said that the Reserve Bank had not heeded to their request for a reduction in lending rate or a separate chapter for exporters in the monetary policy.

This announcement on enhancing the interest subvention rate on rupee export credit from 2 per cent to 3 per cent seems to have boosted their confidence, about remaining globally competitive.

“We are happy to note that the Government has conceded to our long-pending request for enhancing the interest subvention rate from 2 to 3 per cent. In addition to this positive measure, we are happy to note that all pending claims would also be cleared immediately,’’ President of Tirupur Exporters’ Association A. Sakthivel said.

Stating that the announcement came at a time when the knitwear garment exporting units were contemplating ways and means to reduce the production cost to stay competitive, he said: “this measure would help increase our competitiveness in the global market.’’

While thanking the powers that be, Sakthivel did not forget to reiterate the association’s request for the implementation of Padmanabhan Committee recommendations to put exports on a growth trajectory.

Related Topics