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Measures announced by FM will boost economy: RAI

Updated: May 14, 2020 09:52:52am
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Measures announced by FM will boost economy: RAI

New Delhi, May 15 (KNN) The Retailers Association of India (RAI) lauded the measures announced by Finance Minister Nirmala Sitharaman and said it will provide a boost to the economy especially the MSME sector.

"There are some measures that retailers can definitely benefit from such as the reduction in TDS rates for payments — this is a welcome sign as it helps keep liquidity back with businesses," RAI CEO Kumar Rajagopalan said in a statement.

''The other is the 2% reduction each in the EPF contribution of both, the employer and employee, which again gives cash back in the hands of people who need it in the immediate term,'' he added.

He further said that the measures which will play a big role in accelerating the revival of MSMEs include the statutory relaxation, collateral-free loan support, debt relief and equity infusion.

''We also welcome the revised definition of MSMEs as it is more inclusive and encourages MSMEs to grow with confidence while continuing to enjoy MSME benefits,'' he added.

Our belief is that a multitude of small brands as well as suppliers to retail will be able to derive big benefits from the measures announced.

''However, as on date, retail is not covered under the MSME sector and we have spoken to the MSME Minister Nitin Gadkari to enable the same so millions of MSME retail enterprises too can reap the benefits. We will wait for it to happen,'' he avowed.

He said that retail industry is waiting for more reforms from the Government over the next few days so that retailers in India have some working capital in their hands and they are able to retain employment.

''With the right support, retail in India can help reboot the economy, and provide jobs to more Indians,” he concluded.

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