Textile industry and micro, small and medium-scale enterprises (MSMEs) in Coimbatore and Tiruppur districts have welcomed the announcements by Union Finance Minister Nirmala Sitharaman on Wednesday.
Coimbatore District Small Industries’ Association president R. Ramamurthy said most of the demands of the associations in Coimbatore are met, especially related to definition for MSMEs. The industries can start buying raw materials and can commence operations with confidence.
According to V. Krishna Kumar, president of Southern India Engineering Manufacturers’ Association, the decision to give priority to products made in the country and opening some tenders only to domestic industries are welcome measures. But, the loans announced by the government should be available at lower interest rates.
President of Coimbatore and Tirupur District Tiny and Micro Enterprises’ Association C. Sivakumar welcomed the announcements and said the micro units can start operations and depending on need seek further support from the government. The government should look at waiver of loans for micro units, he said.
J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, added that the micro sector, which is peculiar to Coimbatore region, needs more focus. There should also be clarity on how the announcements will be implemented.
In the textile sector, Confederation of Indian Textile Industry chairman T. Rajkumar said the move to redefine MSMEs will benefit the sector. The ₹ 30,000-crore special liquidity scheme will supplement the measures announced by the RBI Governor to augment liquidity.
Chairman of Apparel Export Promotion Council A. Sakthivel said the measures announced will give more money in hands of people and factories and spur economic growth. Disallowing global tenders will give opportunities to local industries.
According to Ashwin Chandran, Chairman of Southern India Mills’ Association, 60 % of the textile industry in the country are MSMEs and these will benefit. There should be a special package for exports.
Tiruppur Exporters’ Association president Raja M. Shanmugham welcomed continuance of Pradhan Mantri Garib Kalyan package and payment of 12 % of employer and 12 % employee contributions into EPF accounts of eligible establishments for another three months to salary months of June, July and August 2020 also.
S. Nagarajan, president of Dyers’ Association of Tiruppur, while welcoming the announcements said industries abroad get loans at lower interest rates. The units in India should get loans at the international rates.
Published On : 13-05-2020
Source : The Hindu