Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), met Sanjay Malhotra, Governor of the Reserve Bank of India (RBI), along with senior RBI officials in Mumbai on Monday to discuss key issues concerning apparel exporters, particularly MSMEs.
During the meeting, he urged for a dedicated export policy tailored specifically for the MSME sector and proposed the introduction of a Special Interest Package Scheme to enhance their growth and competitiveness.
Highlighting the importance of the engagement, Sakthivel noted that India has signed Free Trade Agreements (FTAs) with 37 countries, creating significant opportunities for the textile and apparel sector. He emphasised that the coming decade presents a strategic window to leverage India’s inherent strengths and accelerate export growth.
In his representation, he pointed out that a large number of apparel exporters, predominantly MSMEs, continue to face operational and regulatory challenges, particularly in their interactions with banks, export finance systems, and compliance frameworks.
To address export finance constraints, the AEPC Chairman requested an increase in the Interest Equalisation Scheme from the existing 2.75 % to 5 % for manufacturing exporters.
He also urged the RBI to consider removing the current cap of ₹50 lakh and enhancing eligibility limits under the scheme in a graded manner based on turnover and export performance.
Sakthivel submitted a detailed representation outlining these recommendations and other policy suggestions for the RBI’s consideration.
