Terming the measures announced by Prime Minister Narendra Modi for supporting MSMEs as a 'Deepawali gift', the industry said these steps would ensure easier access to credit for the sector and address its pain points in long-term.
"We are confident that these measures will certainly go a long way in mitigating the pains of the MSME sector and also give them new energy and vigour," Assocham Secretary General Uday Kumar Varma said.
"These are Deepawali gifts in the true sense of the term to the MSME sector in India," he added.
Confederation of All India Traders Secretary General Praveen Khandelwal said the announcement regarding in-principle approval of loan within 59 minutes reflects the government's commitment towards the MSME sector and will certainly boost business in the country.
"Reduction of 2 per cent interest rate by Banks to GST registered lenders is termed as a real Diwali gift and will encourage more and more people to register with GST," he said.
Exporters' body FIEO's President said the increase in interest subvention to MSMEs on pre and post shipment exports from 3 per cent to 5 per cent is very timely move and will help the exporters to avail credit at competitive rates close to international benchmark.
The prime minister announced a slew of measures including sanction of loans of up to Rs 1 crore to small and medium enterprises in 59 minutes through a special portal to give a boost to the nation's second-biggest employing sector.
GST-registered small and medium enterprises (MSMEs) can now avail of a loan of up to Rs 1 crore in just 59 minutes, he said announcing the measures.
Also, GST-registered MSMEs will get 2 per cent interest subvention or rebate on an incremental loan of up to Rs 1 crore. Interest subvention on pre and post shipment credit for exports by MSMEs has been increased from 3 per cent to 5 per cent, he said.
(With inputs from agencies.)