Definition of Micro, Small, and Medium Enterprises or MSMEs is being revised in their favour: Nirmala Sitharaman
Business

Definition of Micro, Small, and Medium Enterprises or MSMEs is being revised in their favour: Nirmala Sitharaman


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The government, she said, will now increased the threshold limits of investment and turnover of MSMEs, increased investment or turnover will not bring them out of MSMEs category.

Union finance minister Nirmala Sitharaman said on Wednesday the definition of Micro, Small, and Medium Enterprises or MSMEs is being revised in their favour so they don’t outgrow benefit and to enable them to grow in size without losing benefits.

Nirmala Sitharaman was addressing a press conference to give the details of the Rs 20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi a day earlier.

She said low threshold in the 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, she said.

The government, she said, will now increased the threshold limits of investment and turnover of MSMEs, increased investment or turnover will not bring them out of MSMEs category. They will continue to enjoy the benefits of being small enterprises.

The distinction between manufacturing and service sector to be eliminated, she said.

Necessary amendments to the law will be brought about, she added.