The Indian garment industry has welcomed the MSME Package that was recently announced by Prime Minister Narendra Modi.
Rahul Mehta, President, The Clothing Manufacturers’ Association of India (CMAI), thanked the Prime Minister and Textile Minister Smrit iIrani, for the Package. He pointed out that over 75 percent of the garment industry is in this sector and the 12 Announcements covered in the package would benefit most of the units in this Industry.
Identifying scarcity of working capital as a major constraint for the garment industry, Mehta said that the 2 percent Interest Subvention for New Loans, 2 percent Additional Subvention for Export Credits and Clearance of Loans within 59 minutes would immensely help the garment industry to address Working Capital issues.
Credit based on the Upcoming Receivables under e-discounting system is another welcome step in this direction.
The PM had also announced that GST-registered MSMEs would also get 2 percent interest subvention or rebate on incremental loan of up to Rs. 1 crore.
Interest subvention on pre- and post-shipment credit for exports by MSMEs has been increased from 3 percent to 5 percent.
