The government has announced measures to infuse confidence in small and medium units in the garment hub and for boosting industrial demand. Banks will come out with an improved and transparent OTS policy to benefit medium and small units and retail borrowers in settling their overdues and will pass on the rate cuts through MCLR reduction to benefit all borrowers. This will be a great relief to the financially stressed Tirupur knitwear garment exporting units in the small and medium sector.

As for NPA classification norms, the industry has appealed to a revert to the Two Quarter Past Due concept of 180 days instead of the 90 days prevailing now in the case of small and medium units as it will provide some breathing time for the units to recover and recoup. The opinion is that an enough and adequate monitoring mechanism may be implemented even if the overdue crosses 90 days to avoid any siphoning off such as happens in many big corporate cases. The industry requests for restructuring two times to have a leverage, after considering the seasonal nature of the business.

The rebate on state and central taxes and levies was announced on March 7, 2019, for the garment sector to reimburse the embedded taxes and levies not covered under GST.