“I have confidence in India’s farmers, MSMEs, entrepreneurs,” Modi said on Tuesday even as he underscored the need for “Intent, Inclusion, Investment, Infrastructure and Innovation” for a self-reliant India.
Ease of Doing Business for MSMEs: Prime Minister Narendra Modi on Tuesday, stressing on the self-reliance path to recovery for India and integration into the world economy, also reassured the growth for India’s vast MSME sector with the recent revision in the definition and its approval by the government. Addressing the 125th anniversary of industry association Confederation of Indian Industry (CII) Modi said that demand for clarity in the definition of MSMEs that was sought by the industry for a long time has been fulfilled. “This will enable MSMEs to grow without any worries and they will not have to follow other paths to maintain the status of MSMEs,” PMO India tweeted citing Modi.
The Cabinet on Monday had approved three key measures announced by the Finance Minister Nirmala Sitharaman last month for MSMEs as part of the Rs 20 lakh crore economic package for the country. MSME Minister Nitin Gadkari in a press briefing had announced the approval given to the change in the revised definition of medium enterprises apart from micro and small businesses. From Rs 20 crore investment and Rs 100 crore turnover limits as suggested by Sitharaman last month, the revision has been made to Rs 50 crore investment and Rs 250 crore turnover limits. The investment cap for micro and small units is now revised to Rs 1 crore and Rs 10 crore respectively while in terms of turnover, the limit has been enhanced to Rs 5 crore for micro-businesses and Rs 50 crore for small firms across manufacturing and services businesses.
There are nearly 7 crore MSMEs in India across sectors contributing nearly 50 per cent in exports, 29 per cent in overall GDP and employing 11 crore people. MSME Minister Nitin Gadkari multiple times has said that the government is looking to increase the share to 60 per cent in exports, 50 per cent in GDP and additional 5 crore employment in five years. “I have confidence in India’s farmers, MSMEs, entrepreneurs,” Modi said in his address even as he underscored the need for “Intent, Inclusion, Investment, Infrastructure and Innovation” in his vision for self-reliant India and “to bring India on the path of rapid development again,” Modi said.
Modi had launched a grievance registration and management system for MSME issues around finance, raw materials, labour, regulatory permissions etc. — champions.gov.in on Monday. The portal would let MSME associations, units, employees, and aspiring entrepreneurs etc. to register their complaints, suggestions or seek information around the support provided to MSMEs.