NEW DELHI: Union Minister Nitin Gadkari on Friday announced the inclusion of retail and wholesale trade under MSMEs as per which they will also now get the benefit of priority sector lending under RBI guidelines.
He said that the retail and wholesale trade sector was left out of the ambit of MSMEs (micro, small and medium enterprises).
"Now under the revised guidelines, retail and wholesale trade will also benefit from priority sector lending under RBI guidelines," the MSME minister added.
In a tweet, he said the government is committed to strengthening MSMEs and make them engines of economic growth.
Retail and wholesale trade were left out of the ambit of MSME. Under the revised guidelines, MSME has issued order to include retail and wholesale trade as MSME and extending to them the benefit of priority sector lending under RBI guidelines. #MSMEGrowthEngineOfIndia— Nitin Gadkari (@nitin_gadkari) July 2, 2021
The revised guidelines will benefit 2.5 crore retail and wholesale traders. The move would also allow them to register on Udyam portal.
Commenting on the development, Confederation of All India Traders (CAIT) said, with this decision, traders will be able to avail requisite finances from banks and financial institutions under priority sector lending.
Besides, now the traders can avail the benefits of several other government schemes for MSMEs, it said in a statement.