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

Apparel/Garments | On 30th Apr 2016

Britain keen on new ventures in textiles and garment

British High Commissioner to India Sir Dominic Asquith, has said that ...

Apparel/Garments | On 30th Apr 2016

‘India’s apparel sector needs to revisit policies’

Apparel Export Promotion Council (AEPC)’s Additional Secretary...

Textiles | On 30th Apr 2016

Bangladesh spinners wary of another gas price hike

Bangladeshi cotton spinners have expressed concern that they may lose ...

Interviews View All

Ratul Kashyap
BS Overseas

What are the major challenges faced by the companies with global...

Mr. Channy Hur
Gum Kwang Hi-Tex Co. Ltd.

Give us an overview of the nylon/polyester woven fabrics market in Korea...

Vivek Kumar Rawal
BioRe India Ltd.

How is the demand for Indian organic cotton in the world market? What is...

Mr G V Aras
A.T.E Enterprises Pvt Ltd

Armed with an M.Text and a Post Graduate Diploma in Marketing Management,...

Michael Kamm
Sympatex Technologies GmbH

Sympatex Technologies has been one of the leading global suppliers of high ...

Dr. Rene Wollert
Freudenberg Nonwovens

<i><b>Dr. Rene Wollert</b> discusses the current scenario of the global...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
April 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search