New Delhi: The BJP government led by Narendra Modi at the Center revised the MSME guidelines on Friday to include retail and wholesale trade within its scope. This move will benefit retail and wholesale traders by 2.5 crore, as they will have access to priority sector loans in accordance with RBI guidelines.
Commenting on this development, Nitin Gadkari, Minister of MSMEs and Road Transport and Highways, said: âUnder the leadership of Prime Minister Shri Narendra Modi Ji, we are committed to strengthening MSMEs and making them engines of economic growth. The revised guidelines will benefit 2.5 Cr retail and wholesale traders. “
“Retail and wholesale trade were excluded from the scope of MSMEs. Under the revised guidelines, MSMEs issued an order to include retail and wholesale trade as MSMEs and extend to them the benefit of priority sector loans in accordance with RBI guidelines, âthe minister tweeted.
It should be mentioned here that Finance Minister Nirmala Sitharaman on Monday increased the scope of the Emergency Credit Lines Guarantee Program (ECLGS), under which MSMEs are entitled to an additional 20% of bank-backed loans. sovereign guarantee, at 4.5 lakh crore from Rs 3 lakh crore earlier. This device has been extended until September 30, 2021.
With the change in definition of MSMEs, retail and wholesale traders can gain access to this loan facility, which can help them jump-start their businesses, which have been hit hard due to state-specific bottlenecks brought on by the pandemic.