Govt to allocate Rs 2,500 cr to TUFS for MSMEs

    The government today said it will create a Rs 2,500-crore corpus for technology modernisation of the micro , small and medium units by the next year.At present, only textiles sector is availing these benefits under the Technology Upgradation Fund Scheme (TUFS) wherein the units get 5 per cent subsidy on loans, for upgrading technology, from the government.

    The MSMEs account for 45 per cent of the country's manufacturing output and 40 per cent of exports. The sector employs 50 million people in 26 million units producing over 6,000 products.