AEPC Calls for Special Interest Package to Boost MSMEs

The Apparel Export Promotion Council (AEPC) has appealed to the Reserve Bank of India for a special interest package for MSMEs. AEPC Chairman, A Sakthivel highlighted challenges like high borrowing costs and inconsistencies in lending rates, urging for better regulatory guidelines and increased export subsidies.

The Apparel Export Promotion Council (AEPC) has urged the Reserve Bank of India to implement a special interest package tailored for micro, small, and medium-sized enterprises (MSMEs). AEPC Chairman A Sakthivel emphasised the discussions held with RBI Governor Sanjay Malhotra to address these pressing concerns in Mumbai.

Sakthivel mentioned the uneven lending rates determined by banks can inflate borrowing costs for MSMEs, thus affecting their competitiveness in the market. In his plea, he highlighted the operational and regulatory difficulties faced by apparel exporters, with a focus on issues with authorised dealer banks and export finance compliance.

The council pressed for regulatory changes to provide fair, transparent, and uniform lending practices for MSMEs. Sakthivel also recommended that the Interest Equalisation Scheme's subsidy rate for manufacturing exporters should be increased from 2.75% to 5% to ease the export finance constraints.