RE-CLASSIFICATION OF MSME ANNOUNCED BY THE GOVT. OF INDIA
- Hon’ble Minister of Finance, Shmt. Nirmala Sitharaman, informed vide a press conference on 13/05/2020 that the Government of India has decided to answer the long standing demand of various MSMEs (micro, small and medium enterprises) to change their classification and increase the investment cap as provided under the MSMEAct, 2006 in order to include more industries. This will change the definitions of MSMEs and is reflected in the table below
1.1 The slide as presented by the Hon’ble Minister is shown above for reference with respect to the new limits on the classification of the enterprises under the MSME Act, 2006. It is pertinent to note that the Hon’ble Minister in her speech used the terms and/or thus implying that in whichever condition the enterprise falls under the MSME Act, 2006. We shall inform you whenever the clarification and relevant notification is provided. Further, the distinction between Services and Manufacturing enterprise has been eliminated.
The aforementioned measure has been announced in order to ease the liquidity crisis faced by the Industry in light of the CoViD-19 pandemic and the lockdown that is currently in force. Further, to improve the competitiveness and ease the business environment in light of the CoViD-19 Pandemic and it’s impact on the MSMEs.
Associate, Mimansa Law Offices, New Delhi