Tirupur Exporters Association (TEA) has urged Union Finance Minister Nirmala Sitharaman to announce an economic stimulus package for MSMEs in Ready Made Garment (RMG) Sector. Raja M Shanmugham, President, TEA President has urged for extension of moratorium on all existing loans for at least three months to SMA-2 (Special Mention Accounts) also, as these companies have been classified as SMA-2 due to COVID-19.
He says, these units have been facing a financial crisis since 2019 and struggling to repay their loans. During the pandemic, RMG sector saw a huge rise in demand for casual wear due to growing work from home culture. Moreover, the RMG sector creates jobs equivalent to or better than agriculture and hence it needs to be protected, he added.
He further added, these measures will help the sector achieve its normal growth rate, enhance exports and increase employment.
