Slower demand in the market due to recession has compelled companies to go for production cuts and job cuts. This has invoked a sense of financial insecurity among people.
In order to increase the inflow of liquidity in the market and to cope up with the current recession, the Reserve Bank of India recently announced the reduction of repo rate by 100 basis points from 7.5 percent to 6.5 percent and the reverse repo rate from six percent to five percent.
While speaking exclusively to Fibre2fashion.com, Mr Sanjiva Jain, Senior Vice President (Finance), JCT Ltd, told, “Both the steps are welcome as these will help to control the interest cost and input costs along with transportation cost which have increased sharply. These steps are definitely in the right direction and will help the industry in general.”
Discussing on Government’s efforts to normalize the situation and fuel price cuts, Mr Jain stated, “These steps will prove helpful for the textile industry as well but are not sufficient for the industry which has been suffering badly for more than a year now not only because of rising costs but also demand slowdown leading to under-utilisation of capacities. We look forward to more relief from the RBI and Government of India to revive the textile industry.”
In order to increase the inflow of liquidity in the market and to cope up with the current recession, the Reserve Bank of India recently announced the reduction of repo rate by 100 basis points from 7.5 percent to 6.5 percent and the reverse repo rate from six percent to five percent.
While speaking exclusively to Fibre2fashion.com, Mr Sanjiva Jain, Senior Vice President (Finance), JCT Ltd, told, “Both the steps are welcome as these will help to control the interest cost and input costs along with transportation cost which have increased sharply. These steps are definitely in the right direction and will help the industry in general.”
Discussing on Government’s efforts to normalize the situation and fuel price cuts, Mr Jain stated, “These steps will prove helpful for the textile industry as well but are not sufficient for the industry which has been suffering badly for more than a year now not only because of rising costs but also demand slowdown leading to under-utilisation of capacities. We look forward to more relief from the RBI and Government of India to revive the textile industry.”
