The Association of NIFT Alumni (NIFTA) recently wrote a letter to textile minister Smriti Irani recommending several initiatives to address the problems being faced by micro, small and medium enterprises (MSMEs) in the handicrafts, handloom and apparel sector hit by the COVID-19 crisis. Lakhs of poor artisans and craftsmen are dependent on this sector for their livelihood.
NIFTA suggested ameliorating the cash crunch affecting the entire value chain for up to 6 months starting April and stabilising the industry and beginning to build a demand stimulus in the medium term, i.e., by 12 months.The Association of NIFT Alumni recently wrote a letter to textile minister Smriti Irani recommending several initiatives to address the problems being faced by micro, small and medium enterprises in the handicrafts, handloom and apparel sector hit by the COVID-19 crisis. Lakhs of poor artisans and craftsmen are dependent on this sector for their livelihood.#
It also suggested setting up of an emergency relief fund for apparel, accessories, made-ups and handicrafts; establishing an emergency grant for wages to be paid during the lockdown period by manufacturing units and design workshops; moratorium for loan repayment and waiver of Interest for at least six months; allocation of specific working capital credit lines to increase existing working capital limits by 25 per cent without additional collateral for a period of at least two years; immediate disbursal of pending refunds of goods and services tax credit, taxes and subsidies such businesses; assistance in freeing up due payments from both domestic customers and international buyers; and exempting all raw materials, dyes and chemicals, intermediaries, spares and accessories from anti-dumping duty and basic customs duty.
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