Home / Knowledge / News / Textiles / Textile industry welcomes RBI repo rate cut
Textile industry welcomes RBI repo rate cut
30
Sep '15
The Indian textile industry has welcomed the move of the Reserve Bank of India (RBI) to reduce the repo rate, the rate at which the central bank of a country lends money to commercial banks during shortage of funds, as it will stimulate the much needed investment in the textile industry and help in growth.

RBI governor Raghuram Rajan announced a repo rate cut of 50 basis points, making it stand at 6.75 per cent from 7.25 per cent, with immediate effect in its monetary policy on September 29, 2015. This is RBI’s fourth repo rate cut in the year 2015.

“The repo rate cut indicates that there is a sense of urgency to push the economic growth rate, which is welcome,” Siddhartha Rajagopal, executive director of The Cotton Textiles Export Promotion Council of India (TEXPROCIL) told Fibre2Fashion.com. “It also suggests that RBI does not view inflation as a key risk currently which is a relief to all.”

The repo rate cut of 50 basis points will stimulate the much needed investment in the textile sector as the cost of funds are expected to come down. It will also give a sense of feel good to all at a time when the overall global outlook is still in the recovery mode, he stated.

On a similar note, Avinash Mayekar, MD and CEO of Suvin Advisors echoed, “It is a welcome move by the government as most of the industries are facing the burden of financial cost due to high interest rates, in spite of having an edge over competition because of lower production costs. I am sure this will boost new investments as well.”

Dr A Sakthivel, president of Tirupur Exporters’ Association (TEA) also hailed the interest rate cuts in a press statement issued by TEA, and endorsed the view of the RBI that banks should pass on this benefit to their customers. This will trigger more investments and export. He also sent a letter of thanks to the RBI governor for this measure.

Rajan emphasised that the RBI wishes to be accommodative with respect to its inflation targets, and this rate cut will set the ball rolling.(MCJ)

Fibre2Fashion News Desk - india


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Riddhi Jain

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

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Karan Arora
Karan Arora

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

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