Reserve Bank of India (RBI) has increased the policy Repo Rates by 50 basis point from 4.50 percent to 4.90 percent recently with immediate effect. (The rate at which RBI lends money to Banks.)
Raja M Shanmugham, President said RBI has taken the decision mainly to ensure the inflation remains within the target, while supporting growth.
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.
Considering the issues, Raja M Shanmugham said he has appealed to Nirmala Sitharaman, Hon’ble Union Minister of Finance and Shaktikanta Das, RBI Governor to announce to ECLGS 5.0 for garment sector to bail them out of the current crisis, revive them back to normal so as to continue in their exports business.
Reserve Bank of India (RBI) has increased the policy Repo Rates by 50 basis point from 4.50 percent to 4.90 percent recently with immediate effect. (The rate at which RBI lends money to Banks.)
