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

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Liz Manning

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

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Kerem Durdag
Biovation II LLC

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

October 2017

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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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