TEA Hails FM Calls for Reduction of Interest Rate

FmUnion finance minister, Mr. Arun Jaitley has called for reduction in interest rates to spur growth in manufacturing and investment and also creating an environment for reduction of cost in manufacturing quality products.

President, Textile Exporters’ Association, Mr. A. Sakthivel said finance minister’s decision to make an appeal to RBI has come at a time when the export is slowing down due to continuance of recession in European market and partial off take of US economy and noted the reduction of interest rate is a major panacea for the growth of exports.

Mr. Sakthivel also welcomed the finance minister’s suggestion to the Prime Minister to call a meeting with banks chiefs to enhance the credit flow to the manufacturing sectors.

Mr. Sakthivel said he has written separate letters to Mr. Jaitley and Mrs. Nirmala Sitharaman, union minister of state for commerce and industry requesting for continuance of the existing schemes in the envisaged new Foreign Trade Policy to be announced shortly. He also urged for extension of pre and post shipment Rupee Export packing Credit Interest Subvention at 3% available for garment sector with retrospective effect from April one this year to March 31, 2016.