The cabinet decision to exclude the revenue from exports, for availing concessions given to small, micro and medium enterprises, will benefit many struggling textile companies and help boost exports.The turnover limit for medium enterprises have been increased from Rs 100 crore to Rs 250 crore.
Dr Srinivasan, Chairman (The Cotton Textiles Export Promotion Council) said the Government’s move will be a major relief as a large number of exporters in the textiles sector can now be classified as MSMEs under the new criteria and can get all the benefits extended to the MSMEs including 5 per cent interest equalisation scheme.
It will lead to an increase in exports as it will make textile companies more cost competitive and generate more employment opportunities, he said.Further, the investment limit for units to be classified as medium sized enterprises have been enhanced from Rs 20 crore to Rs 50 crore.
“The enhancement in the investment and turnover limits for Medium Enterprises is a very positive step taken by the Government at a time when exporters are passing through unprecedented times on account of Covid,” he added.
MSMEs play a significant role in the Indian economy and contributes about 29 per cent of the GDP and 48 per cent to the country’s exports.
