What Is The Impact Of Change In MSME Definition?

What Is The Impact Of Change In MSME Definition?

The industry was waiting for definition change in MSME for quite a long time. As there was fear among MSME that if they grow in terms of number, they might lose the title of being MSME and lose benefits of Government provided for MSME. So it is great news for the MSME sector which is one of the most important sectors in the Indian Economy.

MSME will no longer have to worry that growing in number might make them ineligible to avail MSME benefits. Earlier there was classification between service industries and manufacturing industry, now it has been removed- both will be the same. Earlier, the MSMEs were defined on the basis of investments they put, now the revised definitions will also include turnover of the company, this will be notified once changes in the law are made.

Let’s See What Exactly The Change In MSME Definition Is:

 Micro Units

REVISED: Investments up to Rs 1 crore and turnover of less than Rs 5 crore for both service and manufacturing

EARLIER: Investment up to Rs 10 lakh for Service sector MSMEs and investment up to Rs 25 lakh for the manufacturing sector MSME

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Small Units

REVISED:  Investment the limit is between Rs 10 crore and turnover of fewer than 50 crores for both service and manufacturing

EARLIER: Investment between up to Rs 5 crore for the manufacturing sector MSME and investment up to Rs.2 crore for service sector MSME.

Medium Units

REVISED: Investments limit is up to Rs 20 crore and turnover of less than  Rs 100 crore for  both service and manufacturing

EARLIER: Investment up to Rs 10 crore for manufacturing sector MSME and investment up to Rs.5 crore for service sector MSME.

As Government has already pushed make in India initiative, it is expected that people will grab opportunities of the same in the coming days.

List Of The Schemes Of The Ministry Of MSME

The Ministry of MSME has several schemes for MSME which aims to provide credit and financial assistance, skill development training, infrastructure development, marketing help, technological and quality up-gradation, and other services for the MSMEs in India. Below are some of the important schemes by the Ministry of MSME

 Credit And Financial Assistance:

1. Prime Minister’s Employment Generation Programme

2. Credit Linked Capital Subsidy Scheme (CLCSS)

3. Credit Guarantee Trust Fund for MSEs (CGTMSE) – Provision of collateral-free credit for MSMEs

Skill Development And Training

1. A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE)

2. Entrepreneurship and Skill Development Programmes (ESDP)


1. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

2. Scheme for Micro & Small Enterprises Cluster Development Program (MSE-CDP)

Marketing Assistance

1.      Scheme for providing financial assistance to Khadi institutions under MPDA

Technology Upgradation And Competitiveness

 1. Financial Support to MSMEs in ZED certification

2. Support for Entrepreneurial and Managerial Development of SMEs through Incubators

 Other Services

1. National Scheduled Caste and Scheduled Tribe Hub

2. Building Awareness on Intellectual Property Rights (IPR) for MSMEs

Source: MSME Annual Report 2018-19, Ministry of MSME



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