New Delhi: In a move which will certainly be welcomed by a big section of the business community, the Union government on Friday revised MSME guidelines to include retail and wholesale trades under its ambit.
This will benefit around 2.5 crore retail and wholesale traders, who will henceforth get access to priority sector lending as per RBI guidelines.
“Retail and wholesale trade were left out of the ambit of MSME. Under the revised guidelines, MSME has issued order to include retail and wholesale trade as MSME and extending to them the benefit of priority sector lending under RBI guidelines,” Union Minister for MSME and Road Transport & Highways Nitin Gadkari tweeted.
“Under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. The revised guidelines will benefit 2.5 Cr Retail and Wholesale Traders,” Gadkari wrote.
All businesses have been hit hard by the COVID-19 pandemic. Broadbasing MSME will help many revive their business by getting access to this lending facility.
On Monday, Union Finance Minister Nirmala Sitharaman extended the emergency credit line guarantee scheme (ECLGS) till September 30, 2021. Under ECLGS, MSMEs can get an additional 20% loans backed by a sovereign guarantee.