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Reduction in PLR by banks to benefit textile sector – Orient Clothing

18
Dec '08

Mr Sidhant Dhingra, Executive Director, Orient Clothing Company Pvt Ltd

In order to curb down the current recession and increase the inflow of liquidity in the market, the Reserve Bank of India recently announced the reduction of repo rate by 100 basis points from 7.5 percent to 6.5 percent and the reverse repo rate from six percent to five percent.

Market experts say that this step will give a fillip to the sinking economy that is struggling hard to combat both inflation and recession.

Speaking exclusively to Fibre2fashion.com, Mr Sidhant Dhingra, Executive Director, Orient Clothing Company Pvt Ltd said, “Reduction in the repo and reverse repo rates by RBI is basically to provide liquidity to already tight banks and to put money in the system through banking channel. However, the banks considering the current global melt down are slow in responding to these measures. The textile industry will be benefited by reduction in Prime Lending Rate (PLR) by banks and if they do not slow down on advances to the industry.”

Mr Dhingra further stated, “The excise duty reduction by 4 percent will benefit the industry by lowering cost of inputs thereby reduction in prices which ultimately will boost the demand.”

“The future of industry particularly of export oriented sectors, considering the global meltdown looks like slow for about 6 months and will improve with the boost in the economic condition of the world,” concluded the Executive Director Orient Clothing optimistically.

Fibre2fashion News Desk - India

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