Chennai, Apr 20 (KNN) The Tirupur Exporters Association (TEA) has requested the Reserve Bank of India to provide dedicated funding support for MSME exporters and issue clearer guidelines to banks to ensure effective credit flow.
The demand was raised during an industry interaction on the investment climate in the apparel sector, where stakeholders highlighted challenges including labour shortages, regulatory pressures and limited access to finance due to Basel III norms and low credit scores.
TEA Joint Secretary, Kumar Duraisamy said Tirupur is targeting exports of Rs 1 lakh crore by 2030, but stressed the need for improved credit availability to sustain growth, reported The Times Of India.
Sustainability Efforts, Cost Pressures Impact Competitiveness
Industry leaders highlighted Tirupur’s strong sustainability practices, including recycling around 13 crore litres of water daily through zero liquid discharge systems. However, high maintenance costs of effluent treatment infrastructure continue to impact competitiveness.
TEA Treasurer, R Gopalakrishnan noted that Tirupur contributes nearly 68 percent of India’s knitted garment exports, generating about Rs 45,000 crore in revenue and employing close to 10 lakh people, with a significant share of women workers.
Call for Policy Support, Easier Credit Access
Stakeholders recommended a dedicated funding window for MSME exporters, similar to priority sector lending for agriculture and education, along with an online loan renewal platform akin to the Jan Samarth Portal to simplify financing access.
RBI Director, Harendra Behera noted that private investment growth has slowed due to rising costs and global uncertainties, urging MSMEs to leverage existing schemes. Industry representatives emphasised that timely and affordable credit remains critical for sustaining growth and enhancing global competitiveness.
(KNN Bureau)
2012-01-26
