Cabinet Committee on Economic Affairs has given approval for interest equalisation scheme (earlier called Interest Subvention Scheme) on pre and post shipment rupee export credit with effect from April 1, 2015 for five years which is welcomed by the textile units.

According to regional chairman of Federation of Indian Export Organisations, A. Sakthivel, who is also the president of Tirupur Exporters Association was of the opinion that the scheme had come at an appropriate time when the apparel exports registered negative growth in August and September on a year-to-year basis.

The three percent interest equalisation scheme for five years will help exporters plan for the long term. It will encourage sectors such as textiles, engineering and leather.

Prabhu Dhamodharan, secretary of Indian Texpreneurs Federation, said that the timely support from the government will help the textile sector regain its export market share and move up the value chain.

While, Southern India Mills’ Association deputy chairman P. Nataraj said that the government has increased draw back rates, expanded the merchandise exports from India scheme and now brought in interest subvention scheme. The scheme for fabrics and made ups will make the industry competitive and will also boost exports.