Sakthivel welcomes extension to the Interest Equalization Scheme by three months
Federation of Indian Export Organisations (FIEO) has signed a Memorandum of Understanding (MoU) with Aramex India to support Micro, Small and Medium Enterprise (MSME) exporters by providing preferential pricing to FIEO members, as well as access to online services for cross-border express shipments.
Members can access these services including creating pickup requests, preparing shipments, and making online payments through a dedicated Aramex banner on the FIEO website. In addition, Aramex will provide helpdesk support to first-time exporters and MSMEs on customs regulations in the Middle East, Africa and Asia, as well as the required paperwork for shipping.
“The MoU will further help FIEO to reach the cottage industries, artisans, housewives, youths, MSMEs and clusters, even in far-flung areas to develop their orientation towards exports,” FIEO Director General & CEO Dr Ajay Sahai said on 1 July 2021 in announcing the MoU.
He also added that FIEO members will get a flat 30% discount on routing service tariffs for express cross-border shipments which will encourage them to start e-commerce exports in a cost-competitive way.
The Indian e-commerce market is expected to grow to US$200 billion by 2026 and has transformed the way business is done in India, he noted.
On the other hand, Aramex recognizes the critical role of small businesses in driving socio-economic growth.
“The partnership with FIEO is part of our commitment to help Indian MSMEs capture global market opportunities by providing access to cost-efficient, seamless and reliable logistics solutions,” said Percy Avari, General Manager of Aramex India, a unit of Aramex of the UAE.
Separately, the FIEO President has welcomed the Government’s decision of granting extension to the Interest Equalization Scheme by three months.
Dr Sakthivel said that the scheme will help the identified export sectors to be internationally competitive and to achieve a higher level of export performance.
The government has accepted FIEO request to further extend the interest subvention scheme as the MSME sector is still due to lack of affordable working capital.
The Government has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to 30 September 2021. The extension takes effect from 1 July 2021.
President FIEO also thanked the Government for timely extension as it will not only provide competitive rates for exports but will also bring it to the near international benchmarks particularly for MSMEs.
He further requested the Government that in order to provide stability to the scheme, it may be extended by 3 years. #exports #banking #financing #MSMEs /fiinews.com
