Home collateral Stalin urges PM to announce special ECLGS program for MSMEs in garment sector

Stalin urges PM to announce special ECLGS program for MSMEs in garment sector


Chennai, October 20 (UNI) Highlighting the severe crisis facing the garment

export sector due to multiple factors, Tamil Nadu Chief Minister MKStalin

urged Prime Minister Narendra Modi to announce a special emergency

Line of Credit Guarantee Scheme (ECLGS) for MSMEs in Garment

sector immediately and provide 20% additional unsecured credit as part of

the new regime.

In a semi-official letter to the Prime Minister, copies of which have been

communicated to the media here today, he said that the garment export business

is going through a serious crisis due to multiple factors, including

the economic impact of Covid-19, the Russian-Ukrainian war and the

anticipated economic slowdown in the West.

“I understand that the month-on-month growth rate of ready-to-wear

garment exports are now in steep decline,” he said.

Pointing out that Tiruppur was one of India’s largest knitwear exporters

clusters that serve the US, UK and European markets, the Chief Minister

stated that MSMEs make up 95% of the exporting units in this cluster.

It is reported that orders for the summer season have now decreased

around 40% compared to last year. Exporting units and their

supplier MSMEs face a serious financial crisis in the coming years.

months due to low demand, he said.

“Thousands of jobs, especially for rural women who constitute an important

part of the workforce are in danger,” Stalin said, adding, considering

the above circumstances, MSMEs should be granted special credit

facilities to survive this crisis.

“I ask you to announce a special emergency line of credit guarantee

Scheme (ECLGS) for MSMEs in the garment sector immediately.

Twenty percent (20%) additional unsecured credit may be provided

under the new regime,” Stalin said and urged the prime minister to

favorably consider this request.

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