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TEA expresses disappointment over RBI's policy statement
03 Dec '14
2 min read
The Tirupur Exporter’s Association (TA) has expressed disappointment against RBI’s decision to not make any changes in its recently released policy statement.
“RBI has given reasons for not making any changes in this policy statement and noted that there is still some uncertainty about the evolution of base effects in inflation, the strength of the on-going disinflationary impulses, the pace of change of the public’s inflationary expectations, as well as the success of the government’s efforts to hit deficit targets and noted a change in the monetary policy stance at the current juncture is premature,” a statement from TEA said.
The statement added, “However, while mentioning the change in the monetary policy stance, RBI Governor noted that, if the current inflation momentum and changes in inflationary expectations continue and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle.”
Reacting to the policy statement, Dr Sakthivel, president at TEA said, “We were expecting the reduction of interest rates and a special consideration announcement for exporting units which have not been addressed in the fifth bi monthly monetary policy.
Dr Sakthivel pointed out that the government is yet to announce 3 per cent Interest Subvention scheme on packing credit which expired on March 31, 2014 which has impacted competitiveness of garment sector, while adding that a major competing country, China has recently reduced their interest rates.
He again reiterated the point that the only way to protect the export sector is to implement the Padmanabhan Committee report and announcement of separate chapter for export sector and also fixing interest for pre and post shipment export credit at 7.00 per cent. (AR)
“RBI has given reasons for not making any changes in this policy statement and noted that there is still some uncertainty about the evolution of base effects in inflation, the strength of the on-going disinflationary impulses, the pace of change of the public’s inflationary expectations, as well as the success of the government’s efforts to hit deficit targets and noted a change in the monetary policy stance at the current juncture is premature,” a statement from TEA said.
The statement added, “However, while mentioning the change in the monetary policy stance, RBI Governor noted that, if the current inflation momentum and changes in inflationary expectations continue and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle.”
Reacting to the policy statement, Dr Sakthivel, president at TEA said, “We were expecting the reduction of interest rates and a special consideration announcement for exporting units which have not been addressed in the fifth bi monthly monetary policy.
Dr Sakthivel pointed out that the government is yet to announce 3 per cent Interest Subvention scheme on packing credit which expired on March 31, 2014 which has impacted competitiveness of garment sector, while adding that a major competing country, China has recently reduced their interest rates.
He again reiterated the point that the only way to protect the export sector is to implement the Padmanabhan Committee report and announcement of separate chapter for export sector and also fixing interest for pre and post shipment export credit at 7.00 per cent. (AR)
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