Home / Knowledge / News / Textiles / Poor credit growth & rate of credit is cause of concern - FIEO

Poor credit growth & rate of credit is cause of concern - FIEO

27
Oct '09
Mr A Sakthivel, President, Federation of Indian Export Organisations(FIEO) while commenting on the credit growth which has been the lowest in 12 years at 10.75% upto October 9, 2009 vis-à-vis the previous year, stated that the credit growth is nearly half of what was projected (20%) by RBI for the year ending March 2010.

The credit projections may undergo realistic downward revisions with the 2nd quarter review of monetary policy on 27th October, 2009 by RBI.

Measures are being taken the world over to stimulate consumer spending and demand so as to improve credit off-take and generate employment in economies added Mr Sakthivel.In order to stimulate demand China has earmarked funds to the time of $ 585 bn. subsidies in textiles have gone from 8 to 12% & a 17% export VAT rebate has also been provided.

FIEO Chief stated that while companies are keeping their expansion plans on hold many of them prefer to take funds from the equity market due to better leveraging.The cost of finance besides being high in itself is made more uncompetitive by add on costs of the nature of service charges like LC advising charges, enhancing of credit limit, amendment charges etc.

Mr Sakthivel strongly advocated to reduce interest rate on pre and post shipment credit in foreign currency from LIBOR + 350 basis points to LIBOR + 100 basis points in view of increased flow of dollar into economy.Besides, foreign bank are providing such loan at LIBOR +50 basis points.

Federation of Indian Export Organisations (FIEO)


Must ReadView All

Pic: Marek Uliasz | Dreamstime.com

Textiles | On 29th Nov 2021

New variant heightens global economic uncertainty

Just as everyone thought that things are slowly moving back to...

Pic: Pawel Pszczola | Dreamstime.com

Textiles | On 29th Nov 2021

Chinese factories to get uninterrupted power supply in winter: NDRC

Factories in China are likely to get an uninterrupted power supply...

Pic: Andy Nowack | Dreamstime.com

Textiles | On 29th Nov 2021

US textile & apparel exports up 20.15% in Jan-Sept 2021

The exports of textile and apparel from United States increased by...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Consistency is the first rule of social media

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Carmen Emanuela Popa, Label - Carmen Emanuela Popa

Carmen Emanuela Popa
Label - Carmen Emanuela Popa

<b>Carmen Emanuela Popa,</b> a Romanian fashion designer, is known for her ...

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


November 2021

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


Advanced Search