Upward revision of MSME definition
Cabinet approves Upward revision of MSME definition and modalities/ road map for implementing remaining two Packages for MSMEs
- Rs 20000 crore package for Distressed MSMEs and
- Rs 50,000 crore equity infusion through Fund of Funds
In the package announcement, the definition of micro manufacturing and services unit was increased to Rs. 1 crore of investment and Rs. 5 crore of turnover.
- The limit of small unit was increased to Rs. 10 crore of investment and Rs 50 crore of turnover.
- Similarly, the limit of a medium unit was increased to Rs 20 crore of investment and Rs. 100 crore of turnover.
- It may be noted that this revision was done after 14 years since the MSME Development Act came into existence in 2006. After the package announcement on 13th May, 2020, there were several representations that the announced revision is still not in tune with market and pricing conditions and it should be further revised upwards.
- Now it will be Rs. 50 crore of investment and Rs. 250 crore of turnover. It has also been decided that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.