MSMEs, which have 29 per cent share in the country's GDP and 48 per cent share in the country's exports and provide employment to millions of people, will receive maximum benefits from the change in the definition of MSME under which turnover limit for medium enterprises has been revised upward to ₹250 crore from present ₹100 crore, as announced earlier. Under the new definition, the distinction between manufacturing and services enterprises has been eliminated.
In the revised definition, even small weaving mills may be included and because of this many garment manufacturers will benefit, said CITI chairman T Rajkumar. He further stated that the Centre’s revision in the definition of MSMEs will give MSMEs the much-needed confidence to grow and will promote its seamless expansion in the country.
Rajkumar also welcomed the decision of Distressed Asset Fund of ₹4,000 crore created to help weaker MSMEs that are struggling through NPA norms due to the outbreak of COVID-19 pandemic. "This fund will bring them back into the business and they can start the business activities afresh with the help of this fund. Further ₹20,000 crore subordinated debt for stressed MSMEs is likely to benefit 2 lakh stressed MSMEs."
"This is the first time when the Government has given so much importance to the MSME sector," said Rajkumar. He further stated that the Government’s announcement of ₹10,000 crore funds for MSME to get listed in the stock market is a welcome measure. He pointed out that along with the other investment, this fund will reach ₹50,000 crore and more funds from the market to MSMEs-listing in the stock market will make MSMEs attract more funds from the market and this will boost the MSME Sector to enhance its reach to major destinations.
CITI chairman appealed to the Government to consider industry’s urgent demand of extending the moratorium for repayment of loans and interest up to March 31, 2021 and extend 25 per cent additional working capital without any collateral or margin money for all the categories of accounts other than MSMEs also.
He has also hoped that the Government would consider textile and clothing industry’s demand for one-time debt-restructuring which can solve many financial related problems of the textile and clothing sector.
CITI chairman also felt that the Government would soon announce a special package for boosting exports for all the textiles and clothing products including cotton yarn and fabric to grab the emerging opportunities and also consuming the surplus cotton that might significantly affect the cotton farmers in the country.
The revised upward limit for the medium enterprises to ₹250 crore, excluding exports from ₹100 crore as announced earlier, will certainly boost many companies which were not able to come under MSME category. However, in order to encourage technology upgradation and scale of operation in the textile sector, the condition of 'investment and sales turnover' needs to be modified as 'investment or sales turn over', Rajkumar said. He hoped that the capital-intensive textile sectors like spinning, independent weaving, processing, etc will also get the much-needed economic package to tide over the ill-effects of COVID-19 pandemic situation.
Fibre2Fashion News Desk (RKS)
Textiles | On 25th Nov 2021
Uzbekistan became the first country to be officially admitted to the...
More freight train services linked China and Europe in the first 10...
E-commerce | On 25th Nov 2021
Vietnam is expected to be the fastest-growing e-commerce market in...
International apparel brands Head honchos
Launched first collection at onset of Covid
Textile Industry Head honchos
Delay in adopting water sustainability both financially & environmentally...
Blockchain is not a silver bullet for each and every problem in supply...
Daniele Uboldi
EptaInks is the screen-printing division of Eptanova, a company that...
Shivaani Jain
Established in 2015, Once Upon A Trunk is a one-stop-shop with almost...
Abdullah Mohammad Saad Hossain
Saad Group is a leading vertically integrated textile group in Bangladesh. ...
Wolfgang Plasser Lenzing AG
The Lenzing Group is an international company headquartered in Austria...
Natacha Defeche Edana
Since 1971, EDANA, the International association serving the nonwovens and ...
Serkan Gogus Mogul Nonwovens
Mogul is a global player ranked among the top 40 nonwoven producers in the ...
Vidur Adlakha & Riccardo Bennidini La Fuori
With an active presence in US, Italy and India, clothing brand La Fuori...
Manish Malhotra Label Manish Malhotra
A multitalented designer and founder of an eponymous label, Manish...
Megha Kumari & Jigar Mali Label Megha & Jigar
New Delhi based label Megha & Jigar blends India's unique handcrafts...
Press Release
Letter to Editor
RSS Feed
Search Companies
editorial@fibre2fashion.com
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.