Hotline: 1800 102 2007
X
Search Business Opportunities
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.

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
  • Competitive Exam Coaching Institute
    About Us   Founded in 1996 by a team of leading educationists,Dr.Bhatia..
    Locations looking for expansion Delhi
    Establishment year 1996
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • About Us  VIP Academy is one of gujarat`s renowned  chains of..
    Locations looking for expansion Delhi
    Establishment year 1996
    Franchising Launch Date 2013
    Investment size Rs. 5lac - 10lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Herbal, Ayurvedic, Homeopathic & Natural Care products
    About US. World Health Care Mart Is a Leading Teleshopping..
    Locations looking for expansion Madhya pradesh
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10000 - 50 K
    Space required 100
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Indore Madhya pradesh
  • Express Food Joints / Drive Through
    About Us: Founded in 2017,”Yummerica Fries” brand is present in 10+..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater MUMBAI Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
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