.
New Delhi: From relaxation in loan repayment to loans backed by govt guarantees, interest subsidy and provident fund and ESIC support for employees, exporters are ready with a Covid-style wishlist that they are presenting to govt and RBI to tackle the challenge posed by the US tariffs.”This is an earthquake which will impact the workforce. Relief must be given to the industry,” said Kirit Bhansali, chairman of Gems & Jewellery Export Promotion Council after a meeting with RBI on Tuesday. With payments likely to be delayed, he wants banks to go easy on loan repayment.Fieo is seeking a one-year moratorium on loan repayment, both principal and interest, arguing that it will enable exporters to direct resources towards market diversification & manage cash flows better at a time when they will be hit by fewer orders and extended payment cycles. Besides, it wants automatic 30% enhancement of credit limits to streamline working capital flows.”We are staring at a crisis which will force shutdowns and cause unemployment. Govt is asking us to sell in the domestic market, how do we do that with goods that were meant for the US?” said Fieo president S C Ralhan, ahead of his meetings with finance minister Nirmala Sitharaman and commerce & industry minister Piyush Goyal. Multiple agencies are also pitching for support from the Export Credit Guarantee Corporation.Apparel Export Promotion Council’s (AEPC) asks are from multiple agencies – RBI and different ministries, from textiles to commerce, finance, labour and environment.Citing “high interest rates” of 8-12% in India, compared with 3% in China and Malaysia, it wants the interest subvention scheme to be revived and the pre-shipment rupee export credit be reintroduced immediately for five years.It is demanding a concessional corporate tax rate of 15% for new companies, support for expansion of garment units through a Textile Upgradation Fund Scheme-type facility and warehouses to store inventory overseas.Besides, it has made a case for govt to bear the employers’ share of PF and ESIC contribution for workers in apparel units between Aug 2025 and March, 2026.Further, AEPC and Fieo have proposed skilling assistance for workers in export units. While RBI, as reported by TOI on Tuesday, is holding consultations on possible forbearance, govt is unwilling to offer major fiscal support, at least immediately and is exploring if domestic retailers and overseas buyers can assist exporters. The Centre also believes that reforms and steps such as GST cut will help bolster domestic demand and come to the rescue of Indian players hit by US tariffs.
