Welcoming the initiative of the Union Government, SRTEPC chairman Narain Aggarwal said that 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 MMF textile segment, as most of the manufacturing units of this segment are MSMEs.
“Small and Medium Enterprises are the backbone of Indian economy. The Outreach Programme is also likely to further invigorate the MSME sector since this sector is one of the major generators of employment opportunities and make a significant contribution to the overall growth of the economy,” said Aggarwal.
He also mentioned that the MSME focused Outreach programme will give boost to the man-made fibre (MMF) textile manufacturing units in textile hubs like Surat, Bhiwandi, Ichalkaranji, Malegaon, etc.
The MSME Outreach programme will run for 100 days covering 100 districts throughout the country. Various Central ministers are likely to visit these districts in order to apprise the entrepreneurs about various facilities being extended to MSME sector by the government and financial institutions and to come forward and make best use of these facilities including access to credit and market, etc.
Access to credit has been made easy under the programme. The 59-minute loan approval up to ₹1 crore will enable easy access to credit for MSMEs. There is also 2 per cent interest subvention for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, the interest rebate has been increased from 3 per cent to 5 per cent.
All companies with a turnover more than ₹500 crore, must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS). Joining this portal will enable entrepreneurs to access credit from banks, based on their upcoming receivables. This will resolve their problems of cash cycle.
To ease access to markets, public sector companies have now been asked to compulsorily procure 25 per cent, instead of 20 per cent of their total purchases, from MSMEs. Out of the 25 per cent procurement mandated from MSMEs, 3 per cent must be reserved for women entrepreneurs.
For technology upgradation, 20 hubs will be formed across the country, and 100 spokes in the form of tool rooms will be established.
Under ease of doing business, returns under 8 labour laws and 10 Union regulations must now be filed only once a year. The establishments to be visited by an Inspector will be decided through a computerised random allotment. Under air pollution and water pollution laws, now both these have been merged as a single consent. (RKS)
Fibre2Fashion News Desk – India
| On 14th Jun 2021
Sri Lanka's Export Development Board is concerned over the resolution ...
| On 14th Jun 2021
Pakistan's latest budget aims to reduce the input cost of many...
Apparel exports of Vietnam are expected to increase from $14.96...
Verticals like fast fashion won’t completely adopt personalisation on...
The pandemic has reinstated need for organised retail spaces in Tier II...
Occam's razor principle and purpose-driven innovations
Established in 2018, Forsarees is a socially driven business enterprise,...
The Riri Group is a one-stop supplier of metal accessories for the luxury...
Based out of Como, Italy, and with technological expertise of nearly 70...
Bebop Sensors' smart fabrics allows for a new level of interaction between ...
From May 14 to 17, international exhibitors will present the entire...
UK-based Directa Plus is one of the largest producers and suppliers...
Ramya Rao & Kavea R Chavali
<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...
Anjali Bhaskar has an experience of 12 years in the fashion industry. She...
Sailesh Singhania Label
The Sailesh Singhania label was created to promote handwoven sarees and...
Letter to Editor
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.