Revising the Definition of MSMEs: Who is Likely to Benefit From it?
Until recently, Micro, Small and Medium Enterprises (MSMEs), registered with the concerned government agencies, have been defined in terms of investment in plant and machinery, as mentioned in panel A of Table 1. The registration is the eligibility for availing government promotional assistance, as listed in Table 2.On March 25, economic lockdown was imposed to tackle COVID-19. Expectedly, the decision has severely hurt jobs and livelihoods, especially in the informal sector.
To mitigate the hardships, the Prime Minister proposed Rs. 20 lakh crore Atma Nirbhar Bharat stimuli and relief package.