Keep ₹50 cr investment criterion to define MSMEs: AEPC

In a letter to Union minister for MSMEs Nitin Gadkari, AEPC chairman A Sakthivel said, “I would like to personally thank the Government and you for the various important announcements made in the financial package for the MSME sector. We commit full support to realise the dream of Prime Minister Narendra Modi of a self-reliant India.”

While welcoming the Government’s new definition of MSMEs, Sakthivel said that the apparel exporting industry would recommend keeping only the investment criterion of ₹50 crore irrespective of the turnover, as was the provision earlier.

AEPC chairman said that as the exporters’ turnover depends upon the foreign exchange rates and since rupee value has continuously weakened for the last 10 years, the AEPC has requested the government to keep just the investment criterion and remove the turnover criterion.

In case the second criteria of turnover is needed, its limit should be raised to ₹300 crore, he added.

Highlighting the importance of the apparel industry in terms of its contribution to GDP, exports, investment and employment, Sakthivel said that the apparel sector, largely consisting of MSMEs, is the largest employment provider after agriculture and employs 12.9 million workers directly in which 65 per cent to 70 per cent of the workforce is women.

“The thrust on the benefits to the MSME sector would definitely go a long way in helping the industry in mitigating the present huge crisis and I am positive that these measures will help in mitigating the suffering of the apparel exporting industry and the millions of our workers, for which we remain indeed obliged and grateful,” Sakthivel added. 

Fibre2Fashion News Desk (RKS)