Repo should not be more than 3 to 4% - Gangotri Textiles
December 16, 2008 - India
Recession has created a ‘Fear Factor’ among people across India as it has brought along with it a sense of financial insecurity.
In an effort to create more liquidity into the financial system and give fillip to the sinking economy due to recession, Reserve Bank of India on Saturday announced to reduce the repo rate by 100 basis points from 7.5 percent to 6.5 percent and the reverse repo rate from 6 percent to 5 percent from December 8.
While speaking exclusively to Fibre2fashion.com
, Mr Manoj Kumar Tibrewal, Managing Director, Gangotri Textiles, stated, “This is a welcome step, as it will help the textile industry by lowering interest cost. But, this cut is too small at present, as for the manufacturing sector, the interest has to fall substantially. Sooner it is done earlier will be the revival of manufacturing which is under tremendous stress now.”
Mr Tibrewal continues, “The interest rate in America and Japan is zero and in UK it is mere one percent. So in India also it should not be more than 3-4 percent when compared to the current rate of 12 percent.”