Unveiling the contours of the Rs 20 lakh crore stimulus package deal, Finance Minister Nirmala Sitharaman had final final week introduced a change within the definition of micro, small and medium enterprises (MSMEs).
As per the revised definition, any agency with funding up to Rs 1 crore and turnover under Rs 5 crore will likely be categorized as “micro”. An organization with funding up to Rs 10 crore and turnover up to Rs 50 crore will likely be categorized as “small” and a agency with funding up to Rs 20 crore and turnover under Rs 100 crore will likely be categorized as “medium”.
The earlier criteria for classifying enterprises within the “medium” class was funding up to Rs 10 crore and turnover of up to Rs 5 crore.
“We have taken a decision to raise the up to Rs 20 crore investment (criteria) to up to 50 crore and turnover (limit) to up to Rs 200 crore. So we will issue an order for that,” Gadkari stated.
Also learn: With a low ‘turnover’ threshold, Government’s new MSME definition sows confusion
The minister for MSME and Road Transport and Highways, Gadkari stated he feels the criteria ought to be based mostly on funding “or” turnover as a substitute of funding and turnover each as introduced, including that the federal government “will rectify the same”.
The minister stated he was additionally open to contemplating recommendations relating to enhancing the turnover restrict to up to Rs 250 crore for medium enterprises, and can take up the matter with the MSME secretary.
Gadkari stated the federal government plans to elevate MSMEs contribution to India’s exports to 60 per cent from 48 per cent at current and likewise increase the sector’s contribution to the nation’s GDP from 29 per cent at the moment to 50 per cent.
“We are planning to create 5 crore new jobs. Until now, we have created 11 crore jobs,” stated the minister, including that he was eager on creating Indian MSMEs of worldwide requirements.
Interacting with representatives from an exporters’ physique, he urged exporters to make the most of the “blessing in disguise” posed by the worldwide “hatred against China” by value discount and inspiring import substitution.
Besides, Gadkari stated the federal government needs to make bus ports and can also be planning to construct logistics parks.