Coimbatore: In a Press Release issued here today, Mr.Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) has thanked the Hon’ble Prime Minister for announcing the special economic and comprehensive package of Rs.20 lakh crores equivalent to 10% of India’s GDP to make the country to march towards self-reliant India.
Coimbatore: In a Press Release issued here today, Mr.Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) has thanked the Hon’ble Prime Minister for announcing the special economic and comprehensive package of Rs.20 lakh crores equivalent to 10% of India’s GDP to make the country to march towards self-reliant India.
SIMA also has thanked the Government for revising the definition of MSME, a long pending demand. Mr.Ashwin further stated that since the textiles and clothing industry is predominantly MSME in nature, this will greatly benefit over 60% of the textile units across the textile value chain, especially the garment and made-ups units. He has thanked the Government for allocating Rs.3 lakh crores to extend collateral free loans for businesses including MSMEs and also providing a four-year tenure with moratorium of 12 months on principal repayment, allocating Rs.20,000 crores for stressed MSMEs, and Rs.50,000 crores for potentially viable MSME units.
SIMA also welcomes the marginal reduction of 2% in the employer’s and employees’ contribution in the EPF and 25% reduction in the TDS and TCS that would help improve the liquidity to certain extent.
SIMA further hopes that the Government would consider industry’s dire demand of extending the moratorium for repayment of loans and interest already extended for three months from March 1 for another 10 months. Mr.Ashwin expects that the Government would soon announce a special package for boosting exports for all the textiles and clothing products including cotton yarn and fabric to grab the emerging opportunities and also consuming the surplus cotton that might significantly affect the cotton farmers in the country.
SIMA has also appealed the Government to modify the MSME definition criteria as either investment or annual turnover to encourage technology upgradation in the MSME sector and also help the capital-intensive sectors like spinning, independent weaving, processing, etc.