In fact RBI had been continuously increasing the Repo Rate resulting in persistent and significant hike in interest rate. The export credit as a percentage of net banking credit has been declining. GEA has expressed the fear that rising interest rate would make the garment exports uncompetitive in overseas markets
Mr Vaid pointed out that the problem of finance is comparatively more acute for the small scale garment exporting sector. It is therefore, essential that adequate facilities of Bank Credit both in terms of long term requirement and working capital should be provided to the exporters.
The interest rate for export credit should be lowered substantially as high interest rate increase production as well as transaction costs of exporters. The uncertain political situation along with prospects of a hung parliament with no single party getting the majority in the next elections has further reduced the business sentiments
Mr Vaid expressed the hope the policy-makers will wake up to the new realities soon and take some action so that we can take on competition from China, Bangladesh, Vietnam and others. We want a pro-active approach by various government departments to streamline procedures and make fiscal corrections, said Mr Vaid.
Garments Exporters Association
Fashion | On 29th Aug 2016
Dutch designer Jalila Essaïdi has developed a new material using cow...
Textiles | On 29th Aug 2016
NITI Aayog’s proposal to build a mega textile city on the lines of...
Apparel/Garments | On 29th Aug 2016
The National Retail Federation (NRF), an apex body of US retailers,...
‘Portugal is taking away a major share of the mill made sector.’
‘There is huge demand in the Indian lingerie market for non-wired styles.’
Bolger & O'Hearn
‘The Indian market is interesting and rather persistent in seeking new...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
About one in every 20 patients picks up an infection while hospitalised....
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
"You have to truly understand what your client wants, know her needs, what ...
"We should not compare India and the West. There are things we do that...
Apparel/Garments | On 26th Aug 2016