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CIAE
welcomes monetary and credit policy 03-04
E-Tex
Staff - Mumbai
The
Confederation of Indian Apparel Exporters (CIAE) has welcomed the
monetary and credit policy 2003-04, which it says is on the expected
lines of the industry. The industry had expected a reduction in
the bank rate by 25 bps and CRR by 25 bps.
According
to Mr Amit Goyal, president, CIAE, “The important aspect of
the policy is that the RBI continues to have a softer stance towards
the interest rates. Bank rates have reduced considerably in the
last few years, but that is not enough, considering the global interest
rate scenario. Indian rates are still very much on the higher side.
Some more drastic steps need to be taken.”
He
said that the initial effect of lower interest rates is already
being witnessed in the economy.
“The
October 2002 review indicated that the interest rates on post shipment
rupee export credit beyond 90 days and upto 180 days would be deregulated
from May 1, 2003. In response to this suggestion, the RBI decided
to continue to extend the refinance facility to eligible export
credit remaining outstanding under the post-shipment rupee credit
beyond 90 days upto 180 days. This would help the exporters,”
said Mr Goyal.
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