Union Minister Nitin Gadkari announced inclusion of retail and wholesale trade under MSMEs as per which they will also now get the benefit of priority sector lending under RBI guidelines.
Inclusion of retail and wholesale trade under MSMEs is a “landmark decision” that would help them avail requisite finances from banks and financial institutions under priority sector lending, industry associations said.
Earlier, on Friday, Union Minister Nitin Gadkari announced inclusion of retail and wholesale trade under MSMEs as per which they will also now get the benefit of priority sector lending under RBI guidelines.
Terming it a “landmark decision”, the associations said the move would provide required help to the retail and wholesale trade sector, which is facing tough times due to the pandemic.
“Now under the revised guidelines, retail and wholesale trade will also benefit from priority sector lending under RBI guidelines,” the MSME minister added.
According to the Retailers Association of India (RAI), this will give retail micro, small and medium enterprises (MSMEs) the support they need to survive, revive and thrive.
“This landmark decision will have a structural impact on the sector, helping it get formalised by giving better finance options for businesses that want to get structured,” an RAI statement quoted CEO Kumar Rajagopalan as saying.
The Confederation of All India Traders (CAIT) said after this decision, traders will fall under the MSME category and will be able to avail requisite finances from banks and financial institutions under priority sector lending.
“Besides, now the traders will be enjoying several other benefits of various other government schemes which are being enjoyed by the MSME category,” said CAIT National President B C Bhartia and Secretary General Praveen Khandelwal.
The pandemic-affected traders will now be able to restore their businesses by obtaining necessary finances from banks which were earlier denied to them.
“This step of the government will prove to be a milestone step in reviving not only the economy but even the most vibrant retail trade of India,” they added.
In a tweet, Gadkari on Friday said the government is committed to strengthening MSMEs and make them engines of economic growth.
The revised guidelines will benefit 2.5 crore retail and wholesale traders. The move would also allow them to register on Udyam portal.