Home / Knowledge / News / Apparel/Garments / AEPC Chief expresses disappointment over rise in repo rate
AEPC Chief expresses disappointment over rise in repo rate
Sep '13
Chairman AEPC Dr A Sakthivel, on behalf of the garment & textiles industry has expressed disappointment over the increasing the repo rate. In a statement made, Chairman Dr. Sakthivel stated that, “The availability of capital is central to the growth of the garment sector.

"Most of the exporters are SME and easy availability is a critical input that leads to the smooth functioning. It will also impact the growth export momentum and employment generation. Out input cost have been growing on account of the spiraling inflation and energy cost.  “We were expecting that reduction in CRR that also did not happen”, he added.

It is noteworthy that the monetary and liquidity measures adopted by the RBI in its mid-quarter policy review as was unexpected nothing substantial has changed.  On the basis of an assessment of the current and evolving macroeconomic situation, RBI decided to:

- Reduce the marginal standing facility (MSF) rate by 75 basis points from 10.25 per cent to 9.5 per cent with immediate effect;

- Reduce the minimum daily maintenance of the cash reserve ratio (CRR) from 99 per cent of the requirement to 95 per cent effective from the fortnight beginning September 21, 2013, while keeping the CRR unchanged at 4.0 per cent; and

-Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 per cent to 7.5 per cent with immediate effect.

Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 per cent and the Bank Rate stands reduced to 9.5 per cent with immediate effect. With these changes, the MSF rate and the Bank Rate are recalibrated to 200 basis points above the repo rate.

Dr Sakthivel has asked for the separate chapter for the exports in the banking sector at the fixed rate of 7.5%. I have written to Finance Minister on this, we have been doing well from the last six months and for sustaining the momentum of growth it is an essential need, Chairman demanded.

Apparel Export Promotion Council

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Apparel/Garments | On 25th May 2017

AAFA reinforces opposition to Border Adjustment Tax

The American Apparel & Footwear Association (AAFA) has reinforced its ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Interviews View All

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Smita Murarka

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search