Home / Knowledge / News / Apparel/Garments / More reduction in interest rate required - TEA
More reduction in interest rate required - TEA
20
Mar '13
Reserve Bank of India while announcing the Mid – Quarter Monetary Policy: March 2013, reduced the Repo Rate from 7.75% to 7.5% with immediate effect.

In a reaction to the policy, Dr A Sakthivel, president said though he welcomed the decision of Reserve Bank of India for reduction in Repo rate, this measure would not encourage entrepreneurs in export sector to make investment in their units.

Dr.A.Sakthivel mentioned that the Readymade Garment exports sector has to be treated at par with labour intensive sectors like agriculture and handloom etc, considering the large employment provided by this sector also.

Dr.A.Sakthivel noted that when the interest rates provided to garment sector in our competing countries are between 6% and 7%, the effective rate of interest in India is between 9.5% to 10% that too, even after subtracting 2% interest subvention in our country, . With announcement, the softening of the interest rates could be maximum by point twenty five percent, which is quite minuscule.

Dr A Sakthivel said that a separate chapter for exports in banking sector is necessary and fixed 7.5% interest rate should be available for pre and post shipments credit given to exporting units. Dr A Sakthivel said that the country has to now balance the growth and also simultaneously check the inflationary trends and added that even at a positive growth; the inflation can be controlled and improves the manufacturing.

Dr.A.Sakthivel noted this could be possible only by reduction of the interest rates in one go which would help to boost manufacturing sector and enhance our competitiveness in the Global Market.

TEA

Must ReadView All

Textiles | On 22nd Feb 2017

India to produce 341 lakh bales cotton in 2016-17: CAI

The Cotton Association of India (CAI) has maintained in its January...

Textiles | On 22nd Feb 2017

'India to be self-sufficient in silk production by 2020'

Indian could be self-sufficient in silk production by the year 2020...

Courtesy: London Fashion Week

Fashion | On 22nd Feb 2017

India bags best country award at London Fashion Week

The International Fashion Showcase (IFS) Country Award was given to...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search