Tirupur Exporters Association (TEA) on Thursday requested Union Finance Minister Nirmala Sitharaman to announce an economic stimulus package for MSMEs in Ready Made Garment (RMG) Sector.
Coimbatore: TEA President Raja M Shanmugham said due to the lockdown imposed by various states to combat the pandemic, the industries, particularly MSMEs have been affected largely and struggling to sustain in the business. By taking into account the adverse impact on the industries and need to get them into revival momentum quickly, financial measures are need of the hour, he said. Moratorium for all existing loan at least for three months, extension of ECLGS (Emergency Credit Line Guarantee Scheme) loans for three months to SMA-2 (Special Mention Accounts) also, as these companies have been classified as SMA-2 due to COVID, he added. It may be noted that the ongoing crisis actually began in 2019, which ultimately resulted into financial impact and that was the main reason for these units struggling to repay the loan in time. The casual wear manufacturing segment of RMG sector has huge prospects in this post pandemic era because of the work-from-home culture and this has become a new normal, in the global garment business, owing to which a lot of demand is seen for casual wears and is growing globally. Moreover, the RMG sector creates jobs equivalent to or better than agriculture and considering this, the sector needs to be protected, he noted. These supporting measures are in dire need to this industry and with the right kind of financial measures the RMG sector will achieve its normal growth rate, enhance exports and increase employment, Shanmugham said.