TEA urges govt to announce 3% interest subvention scheme

In a press release, TEA chairman A Sakthivel said they were expecting some reduction in repo rate in RBI's third bi-monthly Monetary Policy Statement, 2015-16, but the RBI has kept the repo rate unchanged.

In its bi-monthly statement, RBI has kept the repo rate and the cash reserve ratio (CRR) unchanged at 7.25 per cent and 4 per cent, respectively.

RBI Governor Raghuram Rajan said that headline inflation is at elevated levels and banks are yet to pass on the full benefits of previous rate cuts.

In view of the RBI keeping repo rate unchanged, TEA has made a strong request to the Central Government to announce 3 per cent interest subvention scheme to employment intensive apparel sector retrospectively from 1 April, 2015, to boost garment export growth. (RKS)

ALCHEMPro News Desk – India