TEA For 3% Interest Subvention Scheme

TEATirupur Exporters’ Association (TEA) has urged the centre to immediately announce three per cent Interest Subvention Scheme on Rupee Packing Credit to the garment sector.

In a release, TEA chairman A Sakthivel said he was expecting some reduction in repo rate in RBI’s third bi-monthly monetary policy statement, 2015-16, but the RBI has kept the repo rate unchanged.

In its bi-monthly statement, RBI has kept the repo rate and the cash reserve ratio (CRR) unchanged at 7.25 per cent and 4 per cent, respectively.

RBI governor, Raghuram Rajan said that headline inflation is at elevated levels and banks are yet to pass on the full benefits of previous rate cuts.

In view of the RBI keeping repo rate unchanged, TEA has made a strong request to the central government to announce three per cent interest subvention scheme to employment intensive apparel sector retrospectively from April one 2015, to boost garment export growth.

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