Home / Knowledge / News / Apparel/Garments / More reduction in interest rate required - TEA
More reduction in interest rate required - TEA
20
Mar '13
Reserve Bank of India while announcing the Mid – Quarter Monetary Policy: March 2013, reduced the Repo Rate from 7.75% to 7.5% with immediate effect.

In a reaction to the policy, Dr A Sakthivel, president said though he welcomed the decision of Reserve Bank of India for reduction in Repo rate, this measure would not encourage entrepreneurs in export sector to make investment in their units.

Dr.A.Sakthivel mentioned that the Readymade Garment exports sector has to be treated at par with labour intensive sectors like agriculture and handloom etc, considering the large employment provided by this sector also.

Dr.A.Sakthivel noted that when the interest rates provided to garment sector in our competing countries are between 6% and 7%, the effective rate of interest in India is between 9.5% to 10% that too, even after subtracting 2% interest subvention in our country, . With announcement, the softening of the interest rates could be maximum by point twenty five percent, which is quite minuscule.

Dr A Sakthivel said that a separate chapter for exports in banking sector is necessary and fixed 7.5% interest rate should be available for pre and post shipments credit given to exporting units. Dr A Sakthivel said that the country has to now balance the growth and also simultaneously check the inflationary trends and added that even at a positive growth; the inflation can be controlled and improves the manufacturing.

Dr.A.Sakthivel noted this could be possible only by reduction of the interest rates in one go which would help to boost manufacturing sector and enhance our competitiveness in the Global Market.

TEA


Must ReadView All

Pic: UNFCCC / Alyssa Strohmann / Unsplash

Fashion | On 17th Jun 2021

Over 70% UN Fashion Charter signatories submit disclosures in 2020

For the 2020 reporting cycle, over 70 per cent of signatories to the...

Pic: Shutterstock

Apparel/Garments | On 17th Jun 2021

Prime Content| Bangladesh apparel exports jump 11.1% in July-May FY21

Readymade garment (RMG) exports from Bangladesh increased by 11.1 per ...

Pic: Shutterstock

Fashion | On 17th Jun 2021

Saudi 100 Brands programme to back global ambitions of domestic brands

Saudi Arabia's Fashion Commission has announced the launch of the...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Textile Industry, Head honchos

Textile Industry
Head honchos

Fashion tech has to be lean and very productive

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

Susanna Koelblin,

Susanna Koelblin

Founded in 1920, Eastman is a global specialty materials company that...

Meghavi Suthar,

Meghavi Suthar

Founded by NIFT graduate <b>Meghavi Suthar </b>in 2017, Kala is an...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

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


June 2021

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


Advanced Search