Retail and Wholesale traders get MSMEs status: PM terms the decision as landmark step

New Delhi: Govt of India on Friday announced revised guidelines for MSMEs facilitating inclusion of 2.5 crore Retail and Wholesale trades as MSMEs, so that they can get priority sector lending under RBI guidelines and also can register on Udyam Registration Portal.

Lauding this decision, Prime Minister Narendra Modi in a tweet said, ‘Our government has taken a landmark step of including retail and wholesale trade as MSME. This will help crores of our traders get easier finance, various other benefits and also help boost their business. We are committed to empowering our traders.’

The move has an immediate impact on smaller retailers and wholesalers with businesses up to Rs 250 crore of turnover in availing immediate-term finance as part of various schemes announced under Atmanirbhar Bharat.

Retail and trade associations welcomed the move, saying that this will enable traders to get access to much-needed capital having been impacted greatly due to the COVID19 pandemic. Several measures announced for the MSME sector over the past year will now be applicable to retail and wholesale traders as well.

This decision will have a structural impact for the sector, helping it get formalised by giving better finance options for businesses that want to get structured. It will give retail MSMEs the support they need to survive, revive and thrive.

On Friday Minister of MSME and Road Transport and Highways Nitin Gadkari had announced revised guidelines for MSMEs with inclusion of Retail and Wholesale trades as MSMEs. In a Tweet he said under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. Gadkari said the revised guidelines will benefit 2.5 Crore Retail and Wholesale Traders. He said Retail and wholesale trade were left out of the ambit of MSME, now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines.

DeshGujarat