Exporters seek govt intervention in providing affordable credit to MSMEs, seek ECLGS extension

Posted under: MSME
Date: 2023-10-05
Exporters seek govt intervention in providing affordable credit to MSMEs, seek ECLGS extension

Exporters have sought the central government's intervention in providing affordable and easy credit availability to MSMEs amid global headwinds due to a lack of liquidity. In a letter to Finance Minister Nirmala Sitharaman, the apex exporters' body, the FIEO requested the extension of the Emergency Credit Linked Guarantee Scheme (ECLGS) till March 31, 2024 and the restoration of an interest subsidy benefit of 5% to manufacturer MSMEs. It said some of the MSME sectors are affected due to a dip in exports on account of a global demand slowdown. ""With interest rates firming up, MSMEs are getting credit at not less than 8–11%. The subvention for the interest equalization scheme was reduced as interest rates were coming down. However, with a complete change in situation, there is an urgent need to restore the interest equalization benefit of 5%,"" it added. India's exports during April–August this fiscal contracted 11.9% to USD 172.95 billion. India's exports contracted 15.88% in July.