Retirement Plan

US removal of trade sops to hit handloom exports

The US government move to withdraw GSP (Generalized System of Preferences) benefits to India from last Thursday will impact export of handloom made home textiles products. Among the home textiles that would face the heat include products made of silk, jute and specialised products such as wall hangings, banners and national flags. National flags predominantly manufactured and exported by SME sector account for the largest of exported item at Rs 466 crore ($64 million). Meanwhile, the interest subvention on pre- and post-shipment finance for exports by MSMEs to 5 per cent from 3 per cent and sanction of loan up to Rs 1 crore to GST-registered MSMEs would boost their confidence. The MSME sector accounts for about 45 per cent of manufacturing output and about 40 per cent of total exports. One of the problems for MSMEs is getting bank finances as majority of them are from informal sector and find it extremely difficult to raise funds for their business activities as credit appraisal is a major challenge, he said.

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