Call for extension of 2% interest subvention for garment exporters

The Ministry of Textiles has sought the extension of concessional export finance scheme to the beleaguered garment export sector in India, which has been excluded from availing the 2% interest subvention benefit in the Union Budget 2010-11.

Speaking on the sidelines of a conference on ‘German Technology for Indian Technical Textiles', Rita Menon, secretary of Ministry of Textiles, stated, "The issue of exclusion of the garment export sector from select sectors entitled to avail the benefit of 2% interest subvention scheme has been taken up with the Commerce and Finance Ministries to address the requirements of Indian garment manufacturers through Budget instruments."

The conference was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Germany's machinery manufacturers association, VDMA.

"Garment export sector has suffered huge losses during the global financial crisis. Therefore, efforts need to be undertaken by the Textile Ministry to urge the government to provide 2% interest subvention scheme on export credit in order to provide some relief to the sector," said Ashish Maheshwari, proprietor of Sonu International, a small-sized garment export unit in Kolhapur, Maharashtra.

During the conference, Ms Menon also talked about the growth projections for technical textiles and the efforts to be undertaken by the Textile Ministry to attract investments into this segment.

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