The budget has given special incentive to them. A large section of the Muslim community is engaged in handloom weaving across the country.
Finance minister in his recent budget has proposed to provide Rs. 3000 Cr. to National Bank for Agriculture and Rural Development (NABARD) to enable handloom weaver cooperative societies, which have become financially unviable to repay their debts. This allocation would help about 3 lakh handloom weavers through 15000 cooperative societies. Excise duty on synthetic yarn has also been reduced to 5 percent from 30 percent.
Finance Minister has announced various other incentives for micro, small and medium enterprises while presenting this year’s union budget. The allotment to Small Industries Development Bank of India (SIDBI) for refinancing incremental lending by banks to these enterprises has been raised from Rs. 4000 Crore to Rs. 5000 Crore.
Mukherjee also announced that the outstanding loans to minority communities which stood at 13 percent of total priority sector lending at the end of last year have been increased to 13.6% in the current year. The Public Sector Banks have been directed to achieve a target of 15% as outstanding loans to minority communities under priority sector lending at the earliest.