DGFT said a big thing for MSME exports, problems due to high interest rates

New Delhi : Director General of Foreign Trade i.e. DGFT Santosh Kumar Sarangi has said a big thing about the MSME sector. He has said that high interest rates are a big problem for the exporters community and the Commerce Ministry is coming forward to help them on this front. Besides, the Finance Ministry is also ready to cooperate in this.

Sarangi said the Commerce Ministry is finding it 'difficulty' in explaining to the Finance Ministry the relevance of the Interest Equalization Scheme or IES and its contribution in maintaining manufacturing competitiveness. He said that there are many studies which show that too many guarantees are asked by financial institutions, due to which micro, small and medium enterprises i.e. MSMEs face difficulty in accessing institutional finance and this prevents them from entering the export market. Prevents from.

Sarangi has said that therefore we are working with the Finance Ministry to ensure a system without any guarantee or subsidy for MSMEs. The Director General of Foreign Trade said this in the Export Competitiveness Conference of the Confederation of Indian Industry (CII). He said that interest rates in India are higher than its counterpart countries.

The repo rate in India is 6.5 percent, while in many South-East Asian countries it ranges between 2.5 to 3.5 percent. He has said that hence this is the biggest problem for our exporters, especially MSMEs, in becoming competitive in terms of exports. He said that IES has been able to partially neutralize the impact of extremely high interest rates faced by our exporters. At present this scheme is applicable till 31st December.

Sarangi has said that we hope that our talks with the Finance Ministry will be successful in convincing them that this is really a big intervention for MSMEs. This will not only help them survive in the market but will also ensure that their integration with the global market will be much better and stronger.