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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