Ease of Doing Business for MSMEs: The Tamil Nadu government urged the Centre to release a special emergency credit line guarantee scheme to the micro, small and medium enterprises (MSMEs) involved in the garment business because of the severe stress the sector is under, said the report from PTI.
MSMEs in Tiruppur constitute 95 per cent of the exporting clusters and orders for the summer season have declined by around 40 per cent as compared to the last year, Tamil Nadu’s Chief Minister M K Stalin said in a letter to Prime Minister Narendra Modi.
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The exporting units will be reeling under severe financial crunch in the next few months due to low demand, he said. The garment export sector is facing a major crisis due to the impact on the business as a result of the Covid-19 pandemic, the Russia-Ukraine conflict, and the economic slowdown in the West, Stalin said.
He raised concern that jobs of lakhs of employees, many of whom are women, are in jeopardy. The month-on-month growth rate in readymade garment exports has seen a ‘sharp decline’, he said.
“I request you to announce a special Emergency Credit Line Guarantee Scheme for the MSMEs in the garment sector immediately. Twenty per cent additional collateral free credit may be provided under the new scheme,” Stalin said.
Tiruppur district is one of the largest knitwear exporting clusters that caters to the markets in the United States, the United Kingdom, and Europe, he said.
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