Delivering the economic package, a part of the Aatmanirbhar Bharat Abhiyaan, FM Nirmala Sitharaman on Wednesday announced revisions within the definition of Micro Small and Medium Enterprises (MSME). Earlier, the MSMEs were defined on the idea of investments put in, now the revised definitions also will include turnover of the corporate .
FM Sitharaman also declared that there'll be no more distinction between Manufacturing and repair MSMEs.
“Earlier, the standards for manufacturing units and repair units were different. Now those distinctions between Manufacturing and repair MSMEs are being removed. they're going to all be defined similarly,” she said.
Micro units
MSMEs will now be called Micro units if they need investments upto Rs 1 crore and turnover of but Rs 5 crore. The definition earlier was on investment criteria of up to Rs 10 lakh for Service MSMEs earlier and Rs 25 lakh or manufacturing.Small units
For an MSME to be defined as alittle unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of but 50 crore. this is applicable to all or any MSMEs including the Service enterprises which earlier came under investment of up to Rs 2 crore.Medium units
Enterprises with investments up to Rs 20 crore with a turnover of but Rs 100 crore will now be called Medium units. Earlier, the investment limit for Medium units was up to Rs 10 crore and repair enterprises up to Rs 5 crore.“The definition being changed is completed within the favour of MSMEs. There has always been this fear, among successful MSMEs also, that if they outgrow the dimensions of what has been defined as an MSME, they're going to lose their entitled be ..
