Category: General
Country: India
by Apparel Resources News-Desk 08-June-2022 | 1 min read
Reserve Bank of India (RBI) has increased the policy repo rates by 50 basis point from 4.50 per cent to 4.90 per cent today with immediate effect.
Though the RBI has taken the decision mainly to ensure the inflation remains within the target, while supporting growth,the apparel industry believes that an increase of interest rates by banks will further impact the sustenance of MSMEs.
Raja M Shanmugham, President, Tirupur Exporters Association (TEA) said while pointing out a slew of issues like the increased cotton yarn prices, geo-political tensions and sanctions including fuel price increase in abroad have affected Tirupur export business and the buyers are most reluctant to come forward to increase the prices for the orders and at this crucial situation the increase of interest rates by banks will further impact the sustenance of MSMEs in Tirupur cluster.
He also appealed to Nirmala Sitharaman, Union Minister of Finance and Shaktikanta Das, RBI Governor to announce Emergency Credit Line Guarantee Scheme (ECLGS), 5.0 for garment sector to bail them out of the current crisis, and revive them back to normal so as to continue in their exports business.
Courtesy: https://in.apparelresources.com/business-news/trade/rbi-increases-repo-rate-apparel-industry-urges-eclgs-5-0/
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