Signalling greater financial requirements to meet WORKING CAPITAL needs of Micro, Small and Medium enterprises (MSMEs),Gujarathas had the third highest borrowing under theemergency creditline guarantee scheme(ECLGS).
According to the latest report of the state-level bankers committee (SLBC), Gujarat, Rs 20,862 crore was borrowed under ECLGS the third highest amount in India after Maharashtra and Nadu. Guarantees worth this amount have been issued by the National Credit Guarantee Trust Company Limited (NCGTCL).
Bankers and Industry stakeholders say that Gujarat is not just a manufacturing-heavy state but also is Home to various MSMEs, which faced increased cash needs soon after the pandemic began. When industry was faced with higher freight and raw material costs, their working capital needs shot up further. Gujarat had some 12.18 lakh MSMEs as of July 2021, according to data from the MSME ministry tabled in Parliament.
Gujarat is a manufacturing-heavy state with a high number of MSMEs. The emergency credit extended by way of government guarantees provided to businesses came as a huge booster to industries that were struggling for working capital due to pandemic-induced disruptions.