MSMEs To Be Classified Based On New Criteria From July

Ministry officials said that the new definition will pave way for strengthening and growth of MSMEs. Particularly, the provision of excluding the exports from counting of turnover will encourage the MSMEs to export more and more without fearing to lose the benefits of a MSME unit.

NEW DELHI: From July, over six crore micro, small and medium enterprises across the country will be classified on the basis of the new criteria approved by the government.

As per 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.

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Also, a new composite formula of classification for manufacturing and services units has been notified. Now, there will be no difference between the manufacturing and service sectors.

Ministry officials said that the new definition will pave way for strengthening and growth of MSMEs. Particularly, the provision of excluding the exports from counting of turnover will encourage the MSMEs to export more and more without fearing to lose the benefits of a MSME unit.

Source: ET Retail

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