The Federation of Indian Export Organisations (Fieo) has expressed concern over rising interest rates.
“The Reserve Bank of India’s rate hike will make export finance costlier and Indian goods noncompetitive in the international market. The interest rate has increased to 12.5 per cent from 7 per cent 13 months ago. The rate is as low as 1 per cent in the US and 6 per cent in China,” said Walter D' Souza, regional chairman (South) of Fieo.
The other factor hampering the export growth is lack of proper infrastructure.
