The Apparel Export Promotion Council (AEPC) has urged the government to keep the investment criterion of ₹50 crore irrespective of the unit’s turnover to define the Micro, Small and Medium Enterprises (MSME) in the export sector.
AEPC Chairman A Sakthivel in a communication to MSME Minister Nitin Gadkari said the apparel exporting sector would recommend only the investment criterion of ₹50 crore irrespective of the turnover as was the provision earlier.
Exporters’ turnover is linked to the foreign exchange rate. Since the rupee is continuously weakening, the MSME definition should take the investment criterion and not the turnover criterion, he said
However, if the turnover criterion is needed, the limit should be raised to ₹300 crore, Sakthivel said
Highlighting the importance of the apparel industry in terms of its contribution to GDP, exports, investment and employment, he said the sector largely comprises MSME units, providing direct employment to 12.9 million workers, of which 65-70 per cent are women.
Hailing the government announcements, the AEPC Chairman said, “the thrust would go a long way in helping the industry mitigate the present crisis.