New Definition of MSMEs

  • Low threshold in MSME definition has created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow.
  • There has been a long-pending demand for revisions.
Announcement:

• Definition of MSMEs will be revised.
• Investment limit will be revised upwards.
• Additional criteria of turnover also being introduced.
• Distinction between manufacturing and service sector to be eliminated.
• Necessary amendments to the law will be brought about.
Global tenders to be disallowed upto Rs 200 crores

• Indian MSMEs and other companies have often faced unfair competition from foreign companies.
• Therefore, Global tenders will be disallowed in Government procurement tenders up to Rs 200 crores.
• Necessary amendments of General Financial Rules will be effected.
• This will be a step towards Self Reliant India आत्मनिर्भरर्ारत) and support Make in India.
• This will also help MSMEs to increase their business.

Other interventions for MSMEs

• MSMEs currently face problems of marketing and liquidity due to COVID.
e-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
• Fintech will be used to enhance transaction-based lending using the data generated by the e-marketplace.
• Government has been continuously monitoring settlement of dues to MSME vendors from Government and Central Public Sector Undertakings.
• MSME receivables from Gov and CPSEs to be released in 45 days Other interventions for MSMEs

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