High interest rates: Indian exporters facing cash related challenges
New Delhi| Indian exporters are facing liquidity challenges due to high interest rates. Due to this, companies are not able to become competitive in the global environment, due to which the country’s exports are being affected.
Sanjay Budhiya, chairman of the National Committee on Export-Import (EXIM) of the Confederation of Indian Industry (CII), said, to deal with the challenges related to exports, the central government and banks will have to find a solution together.
He also suggested that the government should extend the interest equalization scheme for exports of all manufacturing sectors including small and medium industries (MSMEs) for three years. The plan has come to an end on December 31, 2024.
Sanjay Budhiya further said that exporters are indeed facing significant challenges on the cash front. Their competitiveness is being affected by high interest rates and a decline in export funding. MSME exporters would benefit greatly from increasing the interest subsidy for export credit from three per cent to 5 per cent before and after. There will also be relief on the trade deficit front.
