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    Rising Interest Rates In India Pose An Impact On Garment Exporters

    2012/3/8 16:23:00 40

    India Interest Rate Garment Knitted Enterprises

    Representing India, a garment exporter in India

    textile

    The chairman of the Apparel Export Promotion Council (AEPC) recently warned that the increase in interest rates and the weakening of customer demand in the main export markets in Europe and America have already impacted the exporters of garment exporters in India.


    AEPC chairman recently sent a letter to India finance minister Pranab Mukherjee, calling on the India government to extend the 2% interest subsidy measures to ready-made garments and

    Knitting enterprise

    The export credit, which has been applied to leather, jute and textile industries, provides exporters with interest rates below 2% of market interest rates to reduce interest burden on enterprises.


    AEPC chairman A Sakthivel said in his letter that due to the rising interest cost, the competitive advantage of India garment industry in the international market has been completely lost, and garment enterprises are operating, and are trying to find funds to meet the needs of funds.


    In addition, the United States and the European Union are mainly

    Clothing market

    The weak demand has severely damaged the export performance of garments and knitted garments in India, resulting in widespread confidence in these enterprises.

    In addition, the closure of Tirupur dyeing and finishing plant in India textile town has also led to the cancellation of many export orders by buyers.


    The canal also warned that many garment enterprises in India will soon be classified as bad assets by banks. This is because they are unable to repay their loans, causing the survival crisis faced by garment exporters in India is increasing.


    The Reserve Bank of India has raised interest rates 13 times since March 2010. Dr. Sakthivel said that the loan interest rate of India garment exporters was higher than 12%, which was a threat to India's competitiveness compared with the 6% or lower lending rates of rival countries such as Bangladesh, Vietnam and Kampuchea.


    President AEPC asked the Ministry of finance of India to support the measures in addition to the 2% export of garments and knitted industries.

    Credit subsidy

    At home and abroad, the plan includes extending the principal repayment of the long-term loans for 24 months, as well as the sharp decline in the prices of materials and finished products, resulting in the backlog of the liquidity of the enterprises, which can be converted into working capital loans, with a period of 5 years and a 1 year extension of repayment.

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