The Reserve Bank of India announced, in its statement on developmental and regulatory policies,...
On the 26th June 2020 Government of India (GOI) considering the initiative drive under the Atmanirbhar Bharat Abhiyaan relief package, the GOI came up with the amendment in the Existing Structure for MSME Classification.
With the aim of the Government is to take in a large number of enterprises under the benefits to be enjoyed by the MSMEs.
Turnover and Investment parameters were revised and changed to larger values in order to include more of the Medium Size enterprise to nurture the benefits so associated with various scheme in MSME ecosystem.
With the combined efforts of the Government of India while uplifting the Economy in this Pandemic Scenario. The Need for the revision in the Existing definition of the MSME on the basis of the Turnover and Investment criteria was considered to be amended.
Furthermore, Key Announcements were made in connection to it to same as:
Accordingly looking way ahead in this regard the Scope of the MSME have increased to many folds.
Considering the new criteria for classifying the MSME sector on the basis of the Investment and turnover, the Scope of the Classification has been widened to cover the chunk of Enterprises under the Scheme. Accordingly, we can have quick look over the Criteria as:
For Plant & Machinery
|Type of Enterprises||Investment Size (INR)||Turnover (INR)|
|Micro Enterprise||Up to INR 1 Crore||Up to INR 5 Crore|
|Small Enterprise||More than INR 1Crore and Up to INR 10 Crore||More than INR 5 Crore and Up to INR 50 Crore|
|Medium Enterprise||More than INR 10 Crore and Up to Up to INR 50 Crore||More than INR 50 Crore and Up to Up to INR 250 Crore|
The Amendment is expected to make a considerable change for the MSME Sector while moving the scenarios towards self-sustainability.
Earlier the Classification was done on the basis of the categories as Manufacturing and Service enterprises and consequent to this amendment they have been considered under the common matrix and have being categorised under as investment in plants and machinery or equipment and turnover.
The Following Schemes are available for MSME:
The following points to be kept in mind while considering the criteria for classification also taking into consideration composite investment & turnover criteria:
Read our article:Amendment in Selection Criteria for MSME