- THE WIRE
Why India's MSME Sector Needs More Than a Leg-Up
The current package a nd reclassification are not sufficient to shield the sector from the pandemic's assault.
The Narendra Modi government two months ago announced the ‘Atmanirbhar’ stimulus package to reboot India’s micro, small and medium enterprises (MSMEs) sector, which was recently reclassified on the basis of turnover and investment.
With effect from July 1, 2020 as per the latest redefinition, a micro enterprise is reclassified as one in which the plant and machinery investment does not exceed one crore rupees and turnover does not exceed five crore, a small enterprise would be that in which investment shouldn’t exceed ten crore with turnover up to fifty crore and in a medium enterprise the investment shouldn’t exceed Rs 50 crore with turnover at Rs 250 crore.