“These measures will provide a much-needed support and encouragement to the MSME sector which contributes significantly to the textiles exports,” said TEXPROCIL chairman Ujwal Lahoti.

Under the package, GST-registered MSMEs will get 2 per cent interest rebate on incremental loan up to ₹1 crore. A web portal has been launched through which MSMEs can avail of loans up to ₹1 crore. The portal will enable principal approval of loans up to ₹1 crore for MSMEs from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs) – State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank.

The MSME sector accounts for about 45 per cent of manufacturing output and around 40 per cent of the total exports. “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,” Lahoti said. (RKS)

Fibre2Fashion News Desk – India