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Prime Minister Narendra Modi has launched a Support and Outreach programme for MSMEs to help them grow and expand. How will this benefit the Indian textile and apparel industry?

'Support and Outreach' huge relief for MSMEs
The recently launched Support and Outreach programme for MSMEs consists of 12 key initiatives. Fibre2Fashion spoke to few textile and apparel industry representatives seeking their reactions.

 

The various announcements and deliverables focused on access to credit, access to market, hand holding and facilitation support measures, etc for MSME sector will substantially encourage and uplift the Indian man-made fibre (MMF) textile segment, as most of the manufacturing units of this segment are MSMEs.

The MSME focused Outreach programme will give boost to the MMF textile manufacturing units in textile hubs like Surat, Bhiwandi, Ichalkaranji, Malegaon, etc.

One of the problems being faced by the MSMEs is in getting bank finances. The announcement has certainly come as a huge relief for the MSME sector as majority of them being in the informal sector find it extremely difficult to raise funds for their business activities as credit appraisal is a major challenge.

The measures announced in the Support and Outreach programme will provide a much-needed support and encouragement to the MSME sector which contributes significantly to the textiles exports.

Over 75 per cent of the garment industry in India is in the MSME sector and the 12 announcements covered in the package would benefit most units in the industry.

The 2 per cent Interest Subvention for new loans, 2 per cent Additional Subvention for export credits and clearance of loans within 59 minutes would immensely help the India's garment industry to address working capital problems. Credit based on Upcoming Receivables under e-discounting system is another welcome step in this direction.

The announcement has come at a time when knitwear exporting units, particularly MSMEs are struggling to be competitive and sustain in the global market. The initiatives are gifts to MSMEs and as a result of this, not only MSMEs spirit and confidence level including competitiveness will get escalated but they would also be able to concentrate and take steps to increase their business.

The sanctioning of loan in just 59 minutes, i.e. less than an hour, will save a lot of time of MSM entrepreneurs. The announcement of the stoppage of visit by inspector, the decision of his visit through a computerised random allotment, and inspectors would have to upload reports on portal within 48 hours, would enable MSMEs to do business hassle free. The positive measures will help Tiruppur exports to bounce back and witness a positive growth.

Published on: 20/11/2018

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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