Hailing the announcement, made by the Hon’ble Prime
Minister, 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.
Mr Gupta has also applauded the Government for its
improved position in Ease of Doing Business Report 2019 and has said that
various initiatives taken by the present Government across sectors are
converging to provide an enabling and supportive eco-system for entrepreneurs
and exporters. He also has urged the Government to continue with the reform
process with further zeal and push India in the top 25 countries in next 3
years befitting India’s stature in the comity of nations.