Shri.Urjit Patel, Governor, RBI on February 8, announced Sixth Bi monthly Monetary Policy for the year 2016 -17 and maintained Repo Rate at 6.25%.
In a press release issued today, Shri.Raja M Shanmugham, President said the he was expecting the reduction of Interest rate post demonetization but the Monetary Policy Committee has maintained the Repo Rate at 6.25% which is disappointing to the exporting community. The reduction in interest rate is most important at this juncture to increase the competitiveness of apparel sector at a time when the apparel sector export growth rate is meagre 3.54% for the nine months period of this fiscal year 2016 -17.
Shri Raja M Shanmugham further pointed out that in the Economic Survey 2016-17, first time a chapter was allocated to apparel, leather and footwear considering their contribution to the economy, exports and employment and added that the growth of this employment intensive sector could be possible only when they get borrowings at lower rate. He mentioned that it is a right time for the knitwear sector to capture the market leaving from China due to increase in cost of manufacturing and specifically noted that once we miss the bus, those market will be dented by our competing countries like Bangladesh, Vietnam, Indonesia and Cambodia.
Shri.Raja M Shanmugham hoped that Monetary Policy Committee would consider the requisition made by the industry in the first bi monthly policy of next year and it would be impetus for the industry.
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