Tirupur: Tirupur Exporters Association (TEA) has urged the Reserve Bank of India (RBI) to allocate dedicated funding support for MSME exporters and issue clear guidelines to both private and public sector banks to ensure that the same reaches industries effectively.TEA, in association with RBI, organized an interactive session on private investment climate in the apparel sector, highlighting key challenges and growth opportunities for micro, small and medium enterprises (MSMEs). Speaking at the event, TEA joint secretary Kumar Duraisamy traced Tirupur’s evolution into a globally recognized knitwear hub. He said the cluster was progressing towards a Rs1 lakh crore export target by 2030, aligning with the Prime Minister’s vision of a $10 trillion economy. He also flagged major concerns faced by MSMEs, including labour shortages, stringent regulations, Basel III norms that make access to loans difficult for MSMEs, and low credit scores. Pointing out that 13 crore litres of water was being recycled daily through zero liquid discharge systems, he said the high maintenance cost of common effluent treatment plant was affecting competitiveness and urged banks to extend liberal financial support. According to TEA treasurer R Gopalakrishnan, Tirupur accounts for 68% of India’s knitted garment exports, generating Rs45,000 crore in export revenue. The sector employs nearly 10 lakh people, with women accounting for 60% of the workforce. Industry representatives stressed the need for dedicated funding support for MSME exporters on the lines of educational and agriculture loans and called on RBI to issue clear guidelines to banks to ensure credit flow to the sector. They also recommended an online loan renewal platform on the lines of Jan Samarth portal to simplify the process. RBI director Dr Harendra Behera observed that private investment growth had slowed since 2008 due to rising financial costs, regulatory uncertainties and global geopolitical factors, and urged MSMEs to leverage existing govt and RBI schemes.
