New Delhi, Aug 10 (PTI): The Indian garment and knitted fabric sector is witnessing a bit of uncertainty due to the Bangladesh crisis, Finance Minister Nirmala Sitharaman said on Saturday, expressing hope that the interim government there will settle things “sooner rather than later.”
Interacting with the media on the sidelines of customary post Budget address to the central board of Reserve Bank of India, she said efforts are being taken to ensure that borders with the neighbouring country are safe.
With regard to Indian investments, she said, the textile industry particularly from Tamil Nadu has made investments there in good faith and they have done well having gone there.
“The exports from Bangladesh also increased because of the duty and quota liberal approach that we have towards low-income countries. They (Indian garment industry based in Bangladesh) could even export to India.”
Particularly, she said, the garment and knitted fabric sector is seeing a bit of uncertainty because of the crisis in the neighbouring country.
“I hope that the investments are all safe… it’s too early for me to see what kind of an impact this situation in Bangladesh will have on our economy. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy,” she said.
‘Banks need to be innovative’
Sitharaman also asked banks to come up with innovative and attractive schemes to mobilise deposits.
Addressing the media after the board meeting of the Reserve Bank of India, she said that deposits and lending are the two wheels of a cart and “deposit is moving slowly.”
The banks, she stressed, need to focus on core banking business which is mobilising deposits and lending to those who need funds.
In order to overcome the mismatch between deposits and lending, Sitharaman asked banks to come up with “innovative and attractive” deposit schemes to mobilise funds from the people.
RBI Governor Shaktikanta Das said that interest rates are deregulated and often banks raise deposit rates to attract funds.
“Banks are free to decide on interest rates”, Das added.
