Dr. A Sakthivel welcomed the move by RBI to lower the repo rates by 25 BSP. He said, On behalf of the entire Textiles Industry I welcome move by RBI to lower the repo cut by 25 bsp. These measures will spur the demand and boost the industrial output.
For the easing of the tight market liquidity conditions on the backdrop of lower inflation, gold and crude prices there were enough room to maneuver. Inputs cost over the times for the garment sector has escalated which results into high cost and weak profit.
The readymade garment exports have to be treated at par with labour intensive sector such as agriculture and handloom etc. The interest rates to garment sector in our competing countries are between 6% to 7% and even with the 2% interest subvention in our country, the effective rate of interest in India is between 9.5% to 10%.
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. Dr. A Sakthivel said that, the country has to boost growth and check the inflationary trends together.
