The President of Tamil Nadu’s Tripurr Exporters Association has released an official press statement, to Finance Minister Nirmala Sitharaman, highlighting the severe financial crisis that the state’s knitwear garment exporting businesses have been facing. The covid pandemic, hike in the prices of Cotton Yarn, and the Russia-Ukraine war has made the situation worse, especially for smaller garment businesses. TEA has, therefore, urged the Finance Ministry to provide 20% credit, under the Emergency Credit Line Guarantee Scheme, to knitwear garment exporting MSMEs. The association has also requested RBI Governor, Shaktikanta Das, to make NPA norms more lenient for these businesses.
The Union Ministry of Commerce has extended the duration of India’s foreign trade policy by 6 more months, up till March 2023. The policy was to expire on 30th September, 2022. This decision was taken in the light of India’s widening trade deficit and increased geopolitical tensions in the world.
In the event of the rupee plunging down to a two year low exchange rate, the market had been expecting the Reserve Bank of India to spend its dollars and in order to raise the exchange rate as quickly as possible. On the contrary, the RBI has sold even fewer dollars than it did in the previous weeks. Bankers across the country have suggested that RBI must only intervene to the extent of stabilizing the rupee, and must not spend large amounts of dollars in the current economic scenario.