Home / Knowledge / News / Apparel/Garments / AEPC demands separate exports chapter in banking sector
AEPC demands separate exports chapter in banking sector
02
Apr '14
RBI released the first bi-monthly Monetary Policy Statement for the year 2014-15 where the key rates like repo rate, CRR, Bank rate and repo rate remained unchanged and the Textiles Exporters were not very happy with the announcement made. 
 
With RBI resisting any reduction of interest rate/ repo rate, Chairman AEPC, Mr. Virender Uppal has expressed his concern that the momentum of the garment export growth may be slowed down further with increase of rupee strengthening over dollar. 
 
In his statement issued, Chairman AEPC said, “With the inflation hovering around 5% and core sector growth improving to 4.5 % in February, impacting positively on industrial production, industry was expecting some relief in terms of lowering of interest rate. With Current Account Deficit also expected to moderate in line with the trade deficit, there was clearly fiscal room for RBI to reduce the interest rate.” 
 
This job critical industry is suffering from high input cost leading to reduced profit margins. Majority of our factories are SME’s and an employment generating sector, and due to adverse consequences of not lowering interest rates, it might lead to the loss of jobs and further slowing of manufacturing activity, he added. 
 
Mr. Uppal demanded, “AEPC has already requested for separate chapter for pre/post packing credit rate of 7.5%. Even the Padmanabhan committee constituted by RBI has recommended this sector to be covered under the priority sector lending. 
 
RBI should consider this favorably so that momentum of garment export growth is not lost. I therefore, request Government to revise the interest rates downwards so that we leverage our export and employment potential.”
 
Chairman AEPC also demanded that RBI should notify extension of the 3% interest subvention which has expired on 31st March 2014 as the garment exporters are trying hard to meet the target set by the Government. 
 
RBI on 1st April 2014 released first bi-monthly Monetary Policy Statement for the year 2014-15 and made the following announcements:
-keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent;
-keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL); and
-increase the liquidity provided under 7-day and 14-day term repos from 0.5 per cent of NDTL of the banking system to 0.75 per cent, and decrease the liquidity provided under overnight repos under the LAF from 0.5 per cent of bank-wise NDTL to 0.25 per cent with immediate effect.
 
Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standingfacility (MSF) rate and the Bank Rate at 9.0 per cent.
 

AEPC


Must ReadView All

Vietnam’s textile & garment exports earn $7.3 bn in Q1

Textiles | On 20th Apr 2018

Vietnam’s textile & garment exports earn $7.3 bn in Q1

Vietnam earned $7.339 billion from textile and garment exports in the ...

Uganda yet to exploit AGOA benefits: US envoy Malac

Apparel/Garments | On 20th Apr 2018

Uganda yet to exploit AGOA benefits: US envoy Malac

Uganda is yet to take full advantage of the Africa Growth and...

Courtesy: KBR, Inc

Textiles | On 20th Apr 2018

KBR completes KPIC’s ethylene plant revamp project

KBR, Inc. has successfully completed the ethylene plant revamp...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Giorgio Mantovani
Corman S.p.A

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Bani Batra

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

Tony Ward
Tony Ward

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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