Indian exporters’ body, the Federation of Indian Exporters, in a letter to the Prime Minister have said that the sector that employs millions of Indians is facing over 50 per cent cancellations in orders. The worst affected industries are leather, carpets, handicrafts, apparels where nearly 75 per cent of orders have been cancelled.
Such massive cancellations will impact India’s current account deficit as foreign inflows slide. The exporters are seeking a package of Rs 30,000 crore to cover for working capital expenses which includes salaries, wages, rent and electricity charges. The exporters have also sought easier lending from banks with collateral free loans. They have also sought that repayments be relaxed to 18 equal instalments and an extension of the moratorium from 3 months to 6 months. The group has urged the PM to direct RBI into implementing the relief measures announced on March 27.
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