2012-12-19

RBI's 'wait and watch' stance may impact MSME export sector: FIEO

Federation of Indian Export Organisations (FIEO) has expressed caution over the Reserve Bank of India’s (RBI) decision of maintaining status quo on policy rates in its mid-quarter review of the monetary policy.

RBI's 'wait and watch' stance may impact MSME export sector: FIEO

Federation of Indian Export Organisations (FIEO) has expressed caution over the Reserve Bank of India’s (RBI) decision of maintaining status quo on policy rates in its mid-quarter review of the monetary policy.

M Rafeeque Ahmed, President, FIEO, in a release said, “For the MSME export sector, stagnating bank credit which in absolute terms was Rs 40.11 lakh crore ending March 2012 as against Rs 39.42 lakh crore ending March 2011, is an ominous sign of things to come if real time measures are not taken fast enough.”

He stated that a package to revive the MSME export sector across the board may be considered.

He suggested the government to incentivise entrepreneurs investing in towns of excellence identified by the Foreign Trade Policy (FTP), investment linked incentives for setting up effluent plants as in the case of leather sector in Agra; warehousing cold chain; testing facilities may be provided.

Under the existing guidelines, withholding tax on interest payments is five per cent for three years. On this, Ahmed said that for External Commercial Borrowings (ECBs) for MSME export sector, waiver of withholding tax may be granted to make ECBs to the sector more attractive.

FIEO chief stated that while inflation may moderate as it appears to be doing, what is of grave concern is that investment in the economy is shying away due to costs/business environment from a high of 25 per cent of GDP in 2007-2008 (gross fixed capital formation, private sector as a percentage of GDP) to levels below 20.78 percent.

Related opportunities
  • Fine Dine Restaurants
    AURANT MODELS FOR AN EXPERIENCED OR A FIRST TIME RESTAURATEUR..
    Locations looking for expansion Gujarat
    Establishment year 2022
    Franchising Launch Date 2023
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Daskroi Gujarat
  • Quick Service Restaurants
    Welcome to Jo Paji Foods! We are a Restaurant cum Cafe..
    Locations looking for expansion Uttar pradesh
    Establishment year 2022
    Franchising Launch Date 2023
    Investment size Rs. 10lakh - 20lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Dadri Uttar pradesh
  • Tea And Coffee Chain
    Welcome to Something's Brewing, the ultimate destination for coffee enthusiasts..
    Locations looking for expansion Karnataka
    Establishment year 2020
    Franchising Launch Date 2023
    Investment size Rs. 50lakh - 1 Cr.
    Space required 1200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Sri Ram Balaji Chemicals was incorporated in 1986 under the..
    Locations looking for expansion Tamil nadu
    Establishment year 1987
    Franchising Launch Date 1990
    Investment size Rs. 10000 - 50000
    Space required 5000
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Salem Tamil nadu
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads