Gujarat's MSMEs Receive Over Rs 24,000 Cr Under ECLGS, Third Highest In India

Ahmedabad, Feb 12 (KNN) The Micro, Small and Medium Enterprises (MSMEs) and industries of Gujarat have availed credit worth Rs 24,493.25 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).

This marks the third-highest disbursement in India, trailing only Maharashtra (Rs 34,107.53 crore) and Tamil Nadu (Rs 27,141.49 crore), as reported by TOI.

With 3.4 lakh guarantees issued, the average ticket size per guarantee stands at Rs 14 crore.

According to information presented in Parliament by the Union Ministry of MSMEs, credit amounting to Rs 24,493.25 crore was disbursed until February 5 of the current year.

The prevalence of a higher number of MSMEs in Gujarat has made the emergency credit, backed by government guarantees, a significant boon for industries grappling with working capital challenges amidst geopolitical tensions, according to state industry stakeholders.

Kumar Aggarwal, a denim manufacturer from Ahmedabad, highlighted liquidity concerns within the denim and textiles industry, citing cost volatility and dwindling demand, both domestically and in exports, as primary factors driving the need for loans.

Industry experts note that various sectors, particularly export-dependent ones, are contending with working capital shortages amid declining order volumes amidst a global economic slowdown.

The Federation of Indian Export Organisations (FIEO) had advocated for an extension of the ECLGS loan deadline until March 31, emphasising persistent liquidity shortages, especially in sectors like chemicals and textiles.

Mihir Patel, Vice-President, Gujarat Chamber of Commerce and Industry (GCCI), acknowledged decreased global demand, particularly attributable to the Russia-Ukraine conflict and inflation in Europe.

He expressed optimism for the forthcoming financial year, anticipating improved global demand to benefit MSMEs, especially in sectors like chemicals and textiles, alleviating working capital concerns.

(KNN Bureau)