The MSME package announced by Prime Minister Narendra Modi recently will address the working capital needs of the garment industry, said Rahul Mehta, president of the Clothing Manufacturers’ Association of India.
Mr. Mehta said in a press release that shortage of working capital was a major constraint for the garment industry, 75 % of which is in the MSME sector.
The 2 % interest subvention for new loans, 2 % additional subvention for export credits, and clearance of loan applications in 59 minutes will help the garment industry.
Regulation of visits by inspectors will also benefit the units, he said.
Ujwal Lahoti, chairman of the Cotton Textiles Export Promotion Council, said increase in interest subvention for pre and post shipment finance will provide the much-needed support and encouragement to the MSMEs.
The council presented 56 awards in 32 categories recently for best export performance during 2017-2018.
Speaking at the function, according to a press release, Union Textile Minister Smriti Irani urged the council to look at giving a boost to exports from the MSME sector. With the announcement of the MSME package, it is the first time that banking institutions were directed to give in-principle approvals to loans in 59 minutes.