New MSME definition to significantly help gems, jewellery sector: GJEPC

The new definition of micro, small and medium enterprises (MSMEs) will significantly help the majority of exporters in the gems and jewellery sector in these difficult times, GJEPC said on Saturday. Gems and Jewellery Export Promotion Council (GJEPC) Chairman Colin Shah said in the sector over 85 per cent exporters constitute MSME, who deal in high-value goods.

“Through the new MSME definition and exclusion of export turnover cap of Rs 250 crore, a large number of exporters of our sector will be benefited. This would also help to revive the exports in this difficult time,” he said.

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From July, over six crore MSMEs will be classified on the basis of the new criteria approved by the government, earlier this month. According to the revised criteria, a unit with Rs 50 crore of investment and Rs 250 crore of turnover will fall under the medium enterprise category.

Besides, a manufacturing and services unit with Rs 1 crore of investment and Rs 5 crore of turnover will be classified as micro whereas a unit involving Rs 10 crore of investment and Rs 50 crore of turnover will be categorised as a small enterprise.

According to exporters, the provision of excluding the exports from the counting of turnover will encourage the MSMEs to boost shipments without fearing to lose the benefits of an MSME unit. In a separate statement, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the decision would strengthen the country’s MSMEs.

“These enterprises will lead the economy to a fast V-shaped recovery post coronavirus pandemic. These measures will not only ensure that Indian MSMEs compete globally but will also result in the birth of many more such enterprises that the huge economy currently needs,” Sakthivel said. He added that MSMEs are the backbone of India’s economy in terms of GDP, exports and job generation.

He also said: “The idea of registering an enterprise just on the basis of Aadhaar number minus the need for any paper document will encourage many enterprising youths to join and enrich the economy with innovations”.