In a letter to MSME Minister Nitin Gadkari, AEPC Chairman A Sakthivel stated that because the exporters’ turnover relies upon upon the international change charges and since rupee worth has constantly weakened for the previous 10 years, it might be applicable to maintain simply the investment criterion and take away the turnover parameter.
Unveiling the contours of the Rs 20-lakh crore stimulus package deal, Finance Minister Nirmala Sitharaman final week introduced a change within the definition of micro, small and medium enterprises (MSMEs).
As per the revised definition, any agency with investment of as much as Rs 1 crore and turnover beneath Rs 5 crore is classed as “micro”. An organization with investment as much as Rs 10 crore and turnover as much as Rs 50 crore shall be categorised as “small” and a agency with investment as much as Rs 20 crore and turnover beneath Rs 100 crore shall be categorised as “medium”.
“The apparel exporting industry would recommend keeping only the investment criterion of Rs 50 crore irrespective of the turnover, as was the provision earlier,” Sakthivel stated.
However, he added that in case the standards of turnover is required, its restrict should be raised to Rs 300 crore.
Highlighting the significance of the business when it comes to its contribution to gross home product (GDP), exports, investment and employment, Sakthivel stated the sector, largely consisting of MSMEs, is offering jobs to 12.9 million employees immediately, through which about 70 per cent of the workforce are girls.
“The thrust on the benefits to the MSME sector would definitely go a long way in helping the industry mitigate the present huge crisis and I am positive that these measures will help in mitigating the suffering of the apparel exporting industry and the millions of our workers,” he added.