Government Changes MSME Definition, Revises Investment Limit Upwards

Government on Wednesday modified the definition of micro, small and medium enterprises (MSMEs) as part of the Atma Nirbhar Bharat Abhiyan (self-reliant India) monetary assist package deal deal launched by Prime Minister Narendra Modi on Tuesday.

“Definition of MSMEs is being modified in favour of MSMEs,” Finance Minister Nirmala Sitharaman talked about whereas providing particulars of the federal authorities’s Rs 20 lakh crore monetary assist package deal deal to spur improvement which has been hit onerous by the COVID-19 induced lockdown.

The model new definition of MSMEs would not differentiate between a producing enterprise and a service sector enterprise, Ms Sitharaman talked about.

Any longer, a company with an funding of as a lot as Rs 1 crore and turnover of Rs 5 crore shall be a micro agency. Earlier, a service sector agency with funding of as a lot as Rs 10 lakh and a producing agency with funding of Rs 25 lakh was outlined as a micro agency.

Likewise, a company with an funding of as a lot as Rs 10 crore and turnover of Rs 50 crore has been outlined as a small agency and a company with funding of as a lot as Rs 20 crore and turnover of Rs 100 crore has been outlined as a medium agency.

Amongst completely different assist measures for the MSMEs, authorities moreover disallowed world tenders for presidency procurement of as a lot as Rs 200 crore.