AEPC calls for further cut in interest rate
Updated: Mar 19, 2013 02:34:01pm
New Delhi, March 19, (KNN) Not satisfied with 0.25 percentage reduction in interest rate by RBI during its mid-quarter monetary policy review, the AEPC today called for further cuts to boost the export sector.
“The readymade garment exports have to be treated at par with labour intensive sectors such as agriculture and handloom, etc. The interest rates to garment sector in our competing countries are between 6 per cent to 7 per cent and even with the 2 per cent interest subvention in our country, the effective rate of interest in India is between 9.5 per cent to 10 per cent.
With today’s announcement, the softening of the interest rates could be maximum by point twenty five per cent (0.25 per cent), which is quite minuscule,” said A Sakthivel, Chairman, Apparel Export Promotion Council.
He called for lowering the interest rate in one go for boosting manufacturing which according to him will also curb inflation.
“A separate chapter for exports in banking sector is necessary and fixed 7.5 per cent interest rate should be available for pre and post shipments. The country has to counter growth and check the inflationary trends together. Therefore, even at a positive growth with check on inflation can improve manufacturing. This can only be possible by lowering of the interest rates in one go for boosting manufacturing sector,” he said.
India's apparel exports are expected to be flat at USD 14 billion in 2012-13 as there is a slowdown in demand in markets like the US and Europe . (KNN)
“The readymade garment exports have to be treated at par with labour intensive sectors such as agriculture and handloom, etc. The interest rates to garment sector in our competing countries are between 6 per cent to 7 per cent and even with the 2 per cent interest subvention in our country, the effective rate of interest in India is between 9.5 per cent to 10 per cent.
With today’s announcement, the softening of the interest rates could be maximum by point twenty five per cent (0.25 per cent), which is quite minuscule,” said A Sakthivel, Chairman, Apparel Export Promotion Council.
He called for lowering the interest rate in one go for boosting manufacturing which according to him will also curb inflation.
“A separate chapter for exports in banking sector is necessary and fixed 7.5 per cent interest rate should be available for pre and post shipments. The country has to counter growth and check the inflationary trends together. Therefore, even at a positive growth with check on inflation can improve manufacturing. This can only be possible by lowering of the interest rates in one go for boosting manufacturing sector,” he said.
India's apparel exports are expected to be flat at USD 14 billion in 2012-13 as there is a slowdown in demand in markets like the US and Europe . (KNN)
Loading...
