Rise in repo rate by RBI disappoints EEPC

KOLKATA: While RBI Governor Dr Raghuram Rajan has eloquently recognised the key role of exports in increasing India’s economic growth in the second half of the current fiscal, the exporting sector has registered a turnaround after a prolonged pain. Thus, the sector needs to be given a consistent and credible support both by the RBI and the government, if Indian goods have to be made competitive in the tough global markets, EEPC India chairman Anupam Shah said.

To that extent, the rise in Repo rate by 25 bps has come as a disappointment for exporters since the move would only increase the cost of borrowings for the international traders. Besides, the EEPC would seek immediate implementation of the report of expert committee which favoured a special dispensation for the export sector, Mr Shah said.

The EEPC India (formerly: Engineering Export Promotion Council ) said if the exports so important for keeping India’s overall macro position in tact, the commensurate priority should be given to the sector.