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By
Fibre2Fashion
Published
Nov 6, 2018
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MSME package will benefit garment industry: CMAI

By
Fibre2Fashion
Published
Nov 6, 2018

The recent package announced by Prime Minister Narendra Modi for the MSME sector has been welcomed by the garment industry. Over 75 percent of the garment industry in India is in the MSME sector and the 12 announcements covered in the package would benefit most units in the industry, The Clothing Manufacturers’ Association of India (CMAI) has said.


Terming the Package as “growth-oriented and visionary," CMAI president thanked Modi and Union textiles minister Smriti Irani.

Identifying scarcity of working capital as a major constraint for the garment industry, Mehta said that the 2 percent Interest Subvention for New Loans, 2 per cent Additional Subvention for Export Credits and Clearance of Loans within 59 minutes, would immensely help the country’s garment industry to address working capital problems.

Credit based on Upcoming Receivables under e-discounting system is another welcome step in this direction, he said in a press release.

"The garment industry being the most labour-intensive segment of the manufacturing sector, complying with the requirements under various labour laws, is a major responsibility for the industry. The present government had initiated some labour reforms for the segment earlier under a Special Package. Stricter Regulation of visits by Inspectors and stipulating that Returns Under 8 Labour Laws and 10 Union Regulations have to be filed now only on annual basis have taken this process further ahead," said Mehta.

He also welcomed social security measures contemplated for workers in the MSME sector. 

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