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Amid rising finance costs, Roto Pumps CFO Pradeep Jain has called for the urgent reinstatement of the 3% interest subvention scheme, warning that its withdrawal from January 2025 could erode MSME exporters’ global competitiveness. Can Indian MSMEs survive without critical policy support? Here’s what the CFO told ETCFO.
Pradeep Jain, Chief Financial Officer (CFO) of Roto Pumps, a listed MSME manufacturer of progressive cavity pumps, has raised concerns over the rising cost of finance following the government’s withdrawal of the 3% interest subvention scheme from January 1, 2025. He urged the government to reinstate the scheme, warning that without this critical support, Indian MSME exporters are at risk of losing their competitive edge in global markets.
Rising Finance Costs Threaten MSME Competitiveness
“The finance cost for MSME exporters has increased from 5.5% to 8.5%,” Jain said in an exclusive interaction with ETCFO. “In comparison, exporters in Europe borrow at just 3.5–4%. This widening gap in finance cost makes Indian MSMEs significantly less competitive.”
He stressed that the average cost of finance in India for current account holders now stands at 9.5–10%, far above international levels.
We are competing globally, and finance cost is one of the most critical factors that determines competitiveness—especially for MSMEs who do not have deep pockets
Pradeep Jain, CFO, Roto Pumps
Exporters’ Associations Press for Policy Support
