Apparel exporters welcome RBI's move to reduce repo rate

KOLKATA: Apparel exporters are happy over Reserve Bank of India's decision to reduce repo rate by 50 bassis points. A. Sakthivel, chairman of Apparel Export Promotion Council ( AEPC) has welcomed the move of the Reserve Bank of India in the reduction of repo rate under the liquidity adjustment facility by 50 basis point after two years.

Therefore, the repo rate would now be 8%. This move would immediately energies manufacturing sector and contain inflation,

The AEPC chairman has appealed to the banks that the lending rates to garment exports may be reduced by minimum 100 point basis and lend to the priority export sector; particularly apparel export sector which employs over 6 million people.

Chairman AEPC thanked the Union minister Pranab Mukherjee and Dr D Subbarao, governor, Reserve Bank of India for this move, which was receiving attention of the Government for quite some time.