The Apparel Export Promotion Council, representing the industry bodies in apparel and textiles sector, said that it is “disappointed” with the Reserve Bank’s mid-quarter monetary policy review announced today.
The apex bank has kept the key interest rates unchanged but hinted at easing rates in January stating that with decline in inflation, the focus of monetary policy would shift to the task of removing the impediments to growth.
Overlooking the demands of the industry and the bankers, the RBI left the short-term lending (repo) rate and cash reserve ratio (CRR) unchanged at 8 per cent and 4.25 per cent.
“Entire textiles and garment industry is disappointed. The unchanged interest rate is leading to a high cost of credit. Other input costs due to high inflationary prices are adding to our woes. The textiles sector needs softer loans to survive and grow,” AEPC Chairman A. Sakthivel said.
“...by not reducing credit rates, exports may not reach the target. This may consequently impact the foreign exchange earnings and job losses may continue in the entire value chain,” he said.