06 February 2024, Mumbai
SIGA Urges Repeal of Rule, Stakeholders Propose Solutions
The South India Garment Association (SIGA) has sounded the alarm on a new payment rule for Micro, Small, and Medium Enterprises (MSMEs) that they claim poses an "existential threat" to the garment industry. Introduced as part of the MSMEs Development Act, Rule 43B(H) mandates prompt payment to small businesses by buyers, with late payments now deemed income for the seller and attracting taxes on the buyer.
Industry in Peril: Threatens Jobs and Exports
Potential Catastrophe:
Stakeholder Solutions:
The Stakes are High:
The garment industry significantly contributes to the Indian economy, employing over 12 million people and accounting for 2% of GDP.
The government's response is crucial to protecting jobs, industry stability, and the sector's contribution to the nation's economy.