Home / Knowledge / News / Apparel/Garments / AEPC Chairman raises concern over hike in repo rates
AEPC Chairman raises concern over hike in repo rates
29
Jan '14
RBI released the Third Quarter Review of Monetary Policy 2013-14 in which it made the following policy changes:

a) The policy repo rate under the liquidity adjustment facility (LAF) increased by 25 basis point from 7.75% to 8%.

b) CRR kept unchanged at 4% of net demand and time liability (NDTL)

c)Consequently, the reverse repo rate under the LAF stands adjusted at 7%, and the marginal standing facility (MSF) rate and the Bank Rate at 9%.

Reacting on the Third Quarter Review of Monetary Policy 2013-14, Mr. Virender Uppal, Chairman of AEPC, has expressed his serious concerns on increasing the repo rate by 25 basis paisa points. In his statement, Mr. Uppal said, “The garment exports despite many inhibiting factors have been surging ahead with a growth rate of 16% over the last three quarters, vis-à-vis same period last year.

“The Government expectations from Apparel exporters are even higher and they expect us to grow at over 31 % on YoY basis. The garment exporting units are expected to invest in product development and also replace the old machineries to increase their competitiveness and efficiency, and therefore, the credit needs are required to be replenished at a much lower flat rate of interest.

“In fact, AEPC has been pitching for priority sector lending for this sector and has even proposed a flat rate of 7.5% for all its credit needs under a separate chapter for exports. Any further increase in credit rates would be a body blow to the Apparel Exporters.

"Therefore, on behalf of the Industry and apparel exporting fraternity, I would urge the Ministry of Finance, Ministry of Textiles and RBI to consider our demand favourably so that, we remain competitive and the momentum of growth is also not lost.”

Mr. Uppal, expressed his concerns on the subdued economic outlook and contracting of the manufacturing activities. He said that garment sector employs highest number of workers in the manufacturing sector and the prevailing conditions might lead to loss of employment too.  Inputs cost over the recent times has escalated, which results into high costs for finished products leaving very thin margins of profit.

Apparel Exports Promotion Council

Must ReadView All

Courtesy: H&M

Apparel/Garments | On 30th Mar 2017

H&M group's sales increase 7% in 3 months to Feb '17

The H&M group's sales including VAT amounted to SEK 54,369 million...

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Textiles | On 30th Mar 2017

Azerbaijan cotton industry created 64,000 jobs last year

Cotton industry in Azerbaijan created 64,000 jobs in 2016, and a...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Steve Cole
Xerium Technologies

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

Mohammad Hassan
Biax Fiberfilm

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

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...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
March 2017

March 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