India Textile Minister Sharma Seeks To Restructure Textile Business Loans

　　 India Textile mills face high prices raw material As well as the pressure of the main export market downturn, they may soon get the help of the government. Anand Charles, Minister of Commerce and textiles (Anand Sharma) sent a letter to minister of finance Mu Keji (Pranab Mukherjee) for reorganization. Spin Company loan At the same time, the 2% interest subsidy will be extended to small and medium-sized enterprises, and even larger clothing and knitted garment enterprises.

According to sources, Sharma asked for capital. Intensive type The textile enterprises repay the principal for two years. Since July 1st, this part of the loan has accounted for 90% of the textile industry's loan.

India is the second largest textile supplier country in the world. At the beginning of this fiscal year, the target has been set to raise India's textile and clothing exports to US $33 billion, compared with the export of US $28 billion in the last fiscal year.

From April to October, the output of cotton yarn decreased by 15%, and the output of cloth decreased by 19%.

The Ministry of Commerce and textiles also suggested reducing the interest burden on enterprises. They suggested that banks provide foreign currency loans to textile exporters to help them greatly reduce the cost of credit. It is suggested that banks can package foreign loans, or dollars, or euros, to provide exporters (LIBOR plus 2%) to enhance their competitiveness.

D.K.Nair, President of the India Textile Industry Association (CITI), said: "if we are allowed to obtain export credits in accordance with the US dollar or euro, our overall interest cost, including the exchange rate difference, should be about 5%, while we need to pay interest on domestic market loans of about 13%-14%."