RBI monetary policy fails to meet exporters' expectations

COIMBATORE: The RBI monetary policy has failed to meet the expectations of the garment sector as exporters were hoping for rate cuts and a special consideration announcement for exporting units, Tirupur Exporters' Association (TEA) said today.

The government was yet to announce 3 per cent interest subvention scheme on packing credit which expired on March 31 last and have already impacted the competitiveness of the garments in the international market, TEA president, A Sakthivel said after the policy review announced by RBI Governor Raghuram Rajan.

The only way to protect the export sector was the implementation of Padmanabhan Committee report and announcement of separate chapter for export sector and also fixing interest for pre and post shipment export credit at 7 per cent, Shaktivel said in a release here.

Moreover, India's major competitor China has recently reduced the interest rates, he said.