Home / Knowledge / News / Apparel/Garments / AEPC Chairman condemns hike in repo rate
AEPC Chairman condemns hike in repo rate
Oct '13
Reacting to the Second Quarter Review of Monetary Policy Statement 2013-14, Dr A Sakthivel, Chairman AEPC, stated that, “The synergistic efforts of all the stakeholders including Govt. has resulted in the average export growth of around 13% in the last six months in this fiscal by garment sector.

"With the improvements in global sentiments which have renewed the prospect of capital outflow in the emerging and developed markets, India was poised to become a significant player.

“But, increasing the repo rate to 25 basis points rate will act as a detrimental to the industry because it will further stress the liquidity condition. Revising of the marginal standing facility (MSF) rate by 25 basis points from 9.0 per cent to 8.75 will not be very effective in easing out the tight liquidity condition.” 

The industry is facing the high cost of finance, increasing the repo rate increase the lending interest rate. AEPC has already requested for separate chapter for pre/post packing credit rate of 7.5%. RBI should consider this once again so that momentum of garment export growth is not lost, he added.

Chairman AEPC, further said, “With CAD also expected to moderate in line with the trade deficit which was two and half year low at 86.76 billion US $ for the month of September 2013 and rupee fall has seized, due to the liquidity tightening measures industry was expecting the reduction of the interest rate.

"We are an employment critical sector and 80% of garment Industry being SME’s it will severely impact the export and employment growth. Further it will also diminish the business and consumer confidence. I request Government to revise the interest rates downwards so that we leverage our export and employment potential.”

Highlighting the strength of the garment Industry Dr A Sakthivel, informed, “India is one of the largest exporters of readymade garments and made-ups to the World. India is considered as the second most preferred destination for major global retailers due to its strength of vertical and horizontal integration.

“India has emerged as an important sourcing base for leading brands like Nike, Reebok, Pepe Jeans, FCUK, Armani, Versace etc. The strength of the country’s products is reflected in the repeat orders from these brands / companies and increase in their outsourcing from India. The industry has survived global recession due to a robust domestic market. Working Group for the Textiles & Jute Industry for the Twelfth Five Year Plan identifies Textiles as a focus Industry which has potential to spur manufacturing.”

RBI released Second Quarter Review of Monetary Policy 2013-14 in which they made the following announcements:

• RBI have reduced the marginal standing facility (MSF) rate by 25 basis points from 9.0 per cent to 8.75 per cent with immediate effect;

• RBI have also increased the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5 per cent to 7.75 per cent with immediate effect; and

• the liquidity provided through term repos of 7-day and 14-day tenor has been increased from 0.25 per cent of net demand and time liabilities (NDTL) of the banking system to 0.5 per cent with immediate effect .

Apparel Export Promotion Council

Must ReadView All

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

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

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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