While reacting to the monitory policy announced by RBI, Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region, citing the inflation outlook, said that it is on the expected lines. However, he pointed out the tight liquidity condition faced by the exporting sector, especially by the MSME sector, and requested the RBI Governor for bringing export lending under priority lending immediately.

The unfavourable condition in our major markets and tough competition from the neighbouring countries, coupled with the higher interest cost and deficiency in dispensation of working capital requirement of the exporters, necessitate for placing of export finance under priority sector lending, he added.