Apparel and textile industry has appreciated the Government initiatives for MSME (Micro small and medium enterprises) sector and expects that this support will really benefit the industry. The Government of India launched MSME Support and Outreach programme which includes 12 decisions, including a 59-minute loan portal for sanction of up to Rs. 1 crore for small and medium enterprises. Majority of the textile and apparel industry players are MSME with most of them struggling to survive due to various challenges. Launching the program, Prime Minister Narendra Modi recalled the glorious Indian traditions of small-scale industry, including Ludhiana’s knitting industry. Access to credit, access to the market, technology upgradation, ease of doing business, and a sense of security for employees are some of the main features of Support and Outreach programme.
HKL Magu, Chairman, AEPC also thanked the Government for the same. The Handloom Export Promotion Council (HEPC) also appreciated thismove of the Government and said, “All MSME industry stakeholders are very happy for the launch of MSME Support & Outreach programme by Prime Minister who announced historic 12 benefits like easier & faster access to credit/markets, improved cash flows.”
Raja. M. Shanmugham, President, TEA said, “The announcement has come at a time when knitwear exporting units, particularly MSMEs are struggling to be competitive and sustain in the global market. Interest subvention from 3 per cent to 5 per centis being requested by us for the past two years. These positive measures will help to bounce back Tirupur apparel exports and witness a positive growth”
Given Below are the main points of the MSME Support & Outreach Programme
- GST-registered MSMEs will get 2 per cent rebate on an incremental loan of up to Rs. 1 crore.
- Interest subvention increased on pre and post shipment credit for exports by MSMEs from 3 per cent to 5 per cent.
- Rs. 6000 crore package has been announced for the technological upgradation in connection with MSMEs. 20, 000 hubs and 100 tool rooms will be developed around the country for this.
- Mandatory sourcing by PSUs from MSMEs increased to 25 per cent from the previous limit of 20 per cent.
- Government companies to buy at least 3 per cent of their purchases from women entrepreneurs.
- It is now mandatory that all the companies with a turnover of more than Rs. 500 crore will have to join TReDS platform, that is Trade Receivables e-Discounting System. So, that MSMEs don’t face trouble in cash flow.
- MSMEs will have to file just one annual return on eight labour laws and 10 central rules.
- 8.Environment clearance and ease of self-certification for MSME.
- The Government has made a big change to Companies Act and has provided relief to MSMEs from legal complications.
