Tirupur Exporters Association (TEA) has seeked the Reserve Bank of India's (RBI) intervention for reduction of interest rates. The association had said there is no change in the key rates, which would affect the industry.
In a press release today, A Sakthivel, President, TEA said that “it was a disappointment to note that there was no announcement in the reduction of interest rate given for the MSME Export Sector, which is urgently needed to have a competitive edge for sustaining in the global market”.
He added, competing countries, especially China, has reduced the interest rate given to exporters at 5.23 per cent. When China is denting our market share in knitwear sector aggressively in US and EU markets, the reduction of interest rate has increasingly become a necessary to stay in these markets.
While commenting on the banks reaction to RBI signals for reduction of interest rates on previous occasions, Sakthivel said that they (banks) have been not reducing their interest rate in proportion to reduction of key rates by RBI and moreover, Banks have also been following wait and watch attitude.
