As per Central Statistics Office (CSO), the contribution of the MSME Sector in the country's Gross Domestic Product and export is around 28.90% and 48% respectively and generated about 110 million employments.
Micro, small and medium enterprise is the sector which was already reeling under huge distress firstly because of demonetization, then because of GST followed by the prolonged economic slowdown, and finally, the biggest of all - the COVID-19 which is going to aggravate the crisis in this specific sector further. The Covid-19 outbreak has brought the globalized world to a standstill. India's economy has taken a massive financial hit during the lockdown imposed to prevent the spread of the corona virus.
During COVID, the Government of India has announced relief measures called 'Atmanirbhar Bharat Package' for many sectors along with MSMEs and also changes the definition of MSME for immediate boost up of the economy. The same is welcomed by the industrialists and all the citizens affected by the pandemic. Some steps were taken by the Government of India to boost the MSME sectors which are as under:
1. MSME New Definition- Important Features:
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There will be no distinction between Manufacturing and Service enterprises under the new norms of MSMEs.
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If an enterprise crosses the ceiling limits in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category. All units with GSTIN listed against the same PAN shall be collectively treated as one enterprise.
This story is from the August 2021 edition of BANKING FINANCE.
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This story is from the August 2021 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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