RAI seeks restoration of MSME status for retailers1 min read . Updated: 19 Mar 2021, 05:07 PM IST
- Recognizing millions of small and medium retailers under MSME will give them a much-needed impetus and finance options, RAI said
New Delhi: Retailers Association of India (RAI) has made representations to various government authorities, including to MSME minister Nitin Gadkari, seeking the restoration of MSME status for retailers, the association said on Friday.
Last year, the government had modified and expanded the definition of MSME. “Earlier, the criteria for defining MSME was investment in plant and machinery, now it is also based on turnover of the company. Even after the revision in the definition of Micro, Small & Medium Enterprises (MSMEs), the Udyam portal launched in July 2020 denies MSME status to retailers," RAI said in a statement.
The appeal comes as the sector suffered a blow during last year’s covid-related restrictions, and MSME status can help retailers avail benefits offered to micro, small and medium enterprises.
Loans given to the MSME sector come under priority sector lending, the association, which represents large and small retailers in the country, said. RAI represents 6,534 establishments.
“The objective behind Primary sector lending is to promote agricultural and labour-intensive businesses in the economy and hence loans are available at concessional rates. Due to withdrawal of MSME status retailers are forced to either borrow at a higher rate or from informal financial sources," RAI said
“Retailer in the country should be made competitive. For this they will need all support that they can garner from the government. Recognizing millions of small and medium retailers under MSME will give them a much-needed impetus and finance options," said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).