Union Textile Minister Smriti Ir on Monday thanked Prime Minister Narendra Modi for the 'massive support granted to MSMEs.'
She said that decisions will have a major transformative impact on the entire textiles industry, especially apparel segment which primarily consists of micro, small and medium enterprises (MSMEs).
In a series of tweets, she lauded the decisions taken by Union Cabinet for MSMEs.
Thanking Prime Minister Modi, Ir tweeted: "Grateful to PM @narendramodi Ji for the massive support granted to MSMEs. Decisions will have a major transformative impact on the entire Textiles Industry especially apparel segment which primarily consists of MSMEs."
In another Tweet, she said: "Approval to Rs 20,000 crore as subordinate debt to provide equity support & Rs. 50,000 crore equity infusion to help MSMEs in managing the debt-equity ratio will reinvigorate the sector which is the backbone of our economy."
The Union Cabinet has approved the modalities for implementing Rs 50,000 crore equity infusion to support MSMEs, which was announced last month as part of Atma Nirbhar Bharat package last month to help the sector cope up with the situation created by COVID-19.
It also approved Rs 20,000 crore subordinate debt for stressed MSMEs and a new definition for MSME under which enterprises with investments up to Rs 20 crore and a turnover of less than Rs 250 crore will now be defined as 'medium' units.
In a subsequent tweet, she said the revision of MSME definition after 14 years is a landmark step towards encouraging MSMEs to expand their horizons.
"MSMEs contribute 29% of India's GDP, 48% to our exports & are a driving force behind employment to crores of people. Revision of MSME Definition after 14 years is a landmark step towards encouraging MSMEs to expand their horizons & boost #AatmrbharBharat," she tweeted.
Earlier in the day, briefing media about the decisions, Information and Broadcasting Minister Prakash Javadekar said the government has further revised the definition of MSMEs, under which businesses that have investments up to Rs 1 crore and turnover of less than Rs 5 crore will be classified as 'micro' units.
Businesses will be defined as a 'small' unit if the investment is Rs 10 crore with a turnover of less than Rs 50 crore whereas enterprises with investments up to Rs 20 crore and a turnover of less than Rs 250 crore will now be defined as 'medium' units.
Finance Minister Nirmala Sitharaman had last month given details about the package for MSMEs after Rs 20 lakh comprehensive package was announced by Prime Minister Narendra Modi.
( With inputs from ANI )