According to Invest India’s report, the garments and textile industry in India is expected to reach a whopping US$ 300 billion by 2024-25. Put simply; the growing market trend could bring enriching business opportunities for your textile-based SME/MSME.
How? Here’s a roundup on how the Indian SME-MSME sector will enjoy the benefits of textile industry boom in 2021.
Revised MSME definition
In June 2020, the Union Cabinet approved the revision of MSME’s definition based on turnover size and investment limit. The new definitions are as follows:
• Micro units – investment up to Rs. 1 crore and turnover below Rs. 5 crores
• Small units – investment up to Rs. 10 crores and turnover below Rs. 50 crores
• Medium units – investment up to Rs. 50 crores and turnover below Rs. 250 crores
The new MSME definitions allowed many medium, small, and micro units to continue their “MSME” status under the revised guidelines. And avail of the various benefits for pandemic-relief, exclusively available to the MSMEs, including the collateral-free SME loan facility introduced by the Centre, from any bank/NBFC.
Push from the Union Budget 2021
The Union Budget 2021 announced India would be setting up seven Mega-Integrated Textile Region and Apparel (MITRA) parks.
This move is expected to double the industry size to US$ 300 billion by attracting large investments and boosting employment. Consequently, make the country’s textile sector, a globally competitive manufacturing and export hub.
Besides MITRA development, additional perks like GST reduction will help the SME-MSMEs free up capital to invest in key growth drivers like technological upgrades, new-age marketing tools, state-of-the-art infrastructure, and more.
However, to ensure a shortage of funds does not prevent you from leveraging the current market scenario, you should always have adequate funds pumping in your business cycle and ensure smooth business operations. And to that end, a competitive SME working capital loan from a reputed lender will be favourable.
Additional Read: Key Things to Know about the Union Budget 2021
Pent-up market demand
Indigenous vaccine roll-out has been a morale booster for the Indian garment and textile industry. Many exporters have already started receiving orders from top suppliers in the garment industry.
Likewise, the pent-up market demand owing to the COVID-19 outbreak is expected to pick up steadily. This makes ‘today’ a perfect time for your MSME enterprise to optimise operations and expand your business.
Typically, business growth for SME/MSME enterprises requires additional capital. But if you are short on funds to finance new investments, you can turn to a reliable finance company and obtain a business loan.
A loan from Tata Capital can help you meet your expansion needs lucratively!
Additional Read: Benefits of applying for an SME loan by Tata Capital
Why Choose Tata Capital?
At Tata Capital, you can readily obtain an SME term loan for competitive ROIs to bank on the rising market boom and grow your textile business fruitfully. Secure funds up to Rs. 75 lakhs to meet your unique requirements.
Besides, our competitive business loan interest rate and flexible EMIs, are structured to your business’ monthly cash flow, so you can repay the debt conveniently while scaling your SME profitably.