CHENNAI: Chief Minister MK Stalin wrote to Prime Minister Narendra Modi on Wednesday, requesting the announcement of an Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs. Stalin said the PM would be aware that the garment export sector is facing a severe crisis as a result of multiple factors including the economic impact of Covid-19, the Russia-Ukraine war, and the anticipated economic slowdown in the West.
“I understand that the month-on-month growth rate in readymade garment exports is showing a sharp decline. Tiruppur is one of India’s largest knitwear exporting clusters that caters to US, UK and European markets. MSMEs constitute 95% of the exporting units in this cluster. It is reported that orders for the summer season have now declined by around 40% compared to last year,” the CM said, adding that exporting units and their supplier MSMEs are staring at a severe financial crisis.