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Repo rate hike will hit knitwear sector: Exporters

The Federation of Indian Export Organisation, Southern region has stated that the RBI's recent repo rate hike was expected given the inflation outlook. Knitwear exporters in Tirupur, on the other hand, have expressed concern that the increase in cost of credit would impact the sector. The RBI recently raised its interest rate by 25 basis points on inflationary concerns for the second time in two months.

The FIEO's southern region Chairman A Sakthivel, however, pointed out to the tight liquidity conditions faced by the export sector especially, by MSME, and requested the RBI governor to bring export credit under priority lending category immediately. The Tirupur Exporters’ Association however stated that the increase in cost of credit would make exports uncompetitive and impact knitwear garment exports.