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22/05/2020 12:23pm

AEPC urges govt to keep Rs 50 crore investment criterion to define MSME in export sector

image AEPC urges govt to keep Rs 50 crore investment criterion to define MSME in export sector

New Delhi, May 22 (KNN) The Apparel Export Promotion Council (AEPC) has urged the government to keep only the investment criterion of Rs 50 crore irrespective of the unit's turnover to define the Micro, Small and Medium Enterprises (MSME) in the export sector.

In a letter to Hon'ble Minister for MSMEs Nitin Gadkari, AEPC Chairman Dr A Sakthivel said, "I would like to personally thank the government and you for the various important announcements made in the financial package for the MSME sector. We commit full support to realise the dream of the Prime Minister of a self-reliant India."

While welcoming the government's new definition of MSMEs, Dr Sakthivel said that the apparel exporting industry would recommend keeping only the investment criterion of Rs 50 crore irrespective of the turnover, as was the provision earlier.

The Chairman said that as the exporters' turnover depends upon the foreign exchange rates and since rupee value has continuously weakened for the last 10 years, the AEPC has requested to keep just the investment criterion and remove the turnover criterion.

However, he added that in case the criteria of turnover is needed, its limit should be raised to Rs 300 crore.

Highlighting the importance of the apparel industry in terms of its contribution to GDP, exports, investment and employment, Dr Sakthivel said that the apparel sector, largely consisting of MSMEs, is the largest employment provider after agriculture and employs 12.9 million workers directly in which 65% to 70% of the workforce are women.

"The thrust on the benefits to the MSME sector would definitely go a long way in helping the Industry in mitigating 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, for which we remain indeed obliged and grateful," he added.

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