Sakservil once again requested Mukji to extend these measures to the entire textile value chain, from contract workers to upstream large-scale departments. The Indian Garment Export Promotion Council believed that this proposal had no income meaning because continuous interest payments were needed for all loans.
1) Extend the principal repayment of long-term loans by 24 months without any asset classification or nearby terms, including the reorganization of loans;
The Indian Garment Export Promotion Council said that these actions would help the garment and knitting sectors, including those dyeing units.
2) The deterioration of working capital caused by the sharp rise in raw material and finished product prices can be converted into working capital loans, with a term of five years and deferred repayment for one year.
The rising interest rates have almost destroyed India's garment and knitting export sector. India's garment and knitting sectors have been affected by the sluggish exports to the US and UK markets. With the rise in interest rates, loans have become more expensive, which has again shaken the sector.
Sakservil requested the Ministry of Finance to support the following measures:
The Chairman of the Indian Garment Export Promotion Council (AEPC), Sakservil, wrote to the Federal Minister of Finance, Mukji, raising this concern. He emphasized that the reality is that the sector has lost its competitiveness in the global market due to the cost of rising interest rates. He appealed to Minister Mukji to take the right actions to restore the competitiveness of the sector. He sought financial restructuring and an extension of the 2% export credit subsidy to the garment and knitting sectors.
3) Include the garment and knitting export sector in the 2% export credit subsidy plan.
This has resulted in the loss of competitiveness in the global market for the garment and knitting export sector, as they struggle to find funds to meet their capital needs. Many garment manufacturing units have quickly been classified as non-performing assets by banks because they are unable to repay their loans.
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