Port Wings News Network:
Hailing the announcement, made by the Prime Minister Narendra Modi, increasing the Interest Equalization from 3% to 5%, Mr Ganesh Kumar Gupta, President, FIEO said that this is very timely move and will help the exporters to get credit at competitive rates close to international benchmark. Coming at a time when interest rates are moving northwards, the deeper support of 5% would provide much needed relief to MSME exporters who were burdened by increasing cost of credit. This move shows that government is very keen to lend a helping hand to MSME to boost exports and create jobs in the country.
Mr Gupta also said that banks should move proactively to increase the flow of credit as there is about 50% drop in export credit in August, 2018 as compared to August, 2017. The outstanding export credit in August, 2017 was Rs 415 billion which dropped to Rs 205 billion in August, 2018. He appreciated the move to have a meeting with the bankers so as to impress upon them the need for timely credit and expeditious renewal of limits.