TEA Seeks RBI Credit Support For MSME Exporters
The Tirupur Exporters Association (TEA) has called on the Reserve Bank of India (RBI) to introduce targeted funding mechanisms for MSME exporters and issue clear directives to banks to ensure seamless credit flow to the sector.
The demand was raised during an interactive session jointly organised by TEA and RBI, focusing on the private investment climate in the apparel industry and the challenges confronting micro, small and medium enterprises.
Addressing the gathering, TEA Joint Secretary Kumar Duraisamy highlighted Tirupur’s transformation into a globally recognised knitwear hub. He noted that the cluster is steadily advancing towards an ambitious Rs 1 lakh crore export target by 2030, in line with the Prime Minister’s vision of building a Rs 10 trillion economy.
However, he highlighted several persistent challenges affecting MSMEs, including labour shortages, stringent compliance requirements, and tighter lending conditions under Basel III norms, which have made access to credit increasingly difficult. Low credit ratings among smaller units further compound the issue.
Duraisamy also pointed to the environmental efforts of the cluster, noting that nearly 13 crore litres of water are recycled daily through zero liquid discharge systems. Despite this, the high operational and maintenance costs of common effluent treatment plants continue to impact the competitiveness of exporters. He urged financial institutions to extend more flexible and affordable funding support to address these concerns.
Industry stakeholders reiterated the need for a dedicated credit framework for MSME exporters, similar to priority lending in sectors such as education and agriculture. They also proposed the development of an online loan renewal platform, on the lines of the Jan Samarth portal, to streamline and simplify access to finance.
Speaking at the session, RBI Director Harendra Behera observed that private investment growth has moderated since 2008 due to rising financial costs, regulatory uncertainties, and global geopolitical challenges. He encouraged MSMEs to make greater use of existing government and RBI-backed schemes to support their growth and resilience.
