With the RBI Credit Policy released, Chairman Apparel Export Promotion Council, Dr. A. Sakthivel, said that the policy has been disappointing as it has not given any relief to the garment exporters who are paying interest above 12% for packing and credit.
According to the Chairman AEPC, the prevailing interest rates are very high and are posing a threat to India’s competitiveness especially with respect to countries like Bangladesh, Vietnam and Cambodia. Most of these countries have around 6% or below interest rates.
AEPC was looking forward to a reduction in interest rate and some special announcement regarding interest subvention for knitwear and garment exports. However, today’s credit policy has not addressed this.
Incorporated in 1978, Apparel Export Promotion Council (AEPC) is the official body of garment exporters that provides invaluable assistance to Indian exporters as well as importers/international buyers who choose India as their preferred sourcing destination for garments.
Source : fibre2fashion.com