The Narendra Modi-led BJP government at the Centre on Friday revised MSME guidelines to include retail and wholesale trades under its ambit. This move will benefit 2.5 crore retail and wholesale traders as they will get access to priority sector lending as per the RBI guidelines.
Commenting on this development, Nitin Gadkari, Minister of MSME and Road Transport and Highways, said, “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.”
“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,” the minister said in a tweet.
Worth mentioning here is that Finance Minister Nirmala Sitharaman on Monday increased the scope of the emergency credit line guarantee scheme (ECLGS), under which MSMEs are entitled to an additional 20% of loans backed by a sovereign guarantee, to Rs 4.5 lakh crore from Rs 3 lakh crore earlier. This scheme has been extended up to September 30, 2021.
With the change in MSME definition, retail and wholesale traders can get access to this lending facility, which can help them in reviving their businesses, which was hit hard due to the pandemic-induced state-specific lockdowns.