Criteria for ‘medium’ units to be revised

Days after changing the definition of MSMEs, the government has decided to further revise the criteria for medium-sized units by enhancing the investment and turnover limits to up to ₹50 crore and ₹200 crore respectively, Union Minister Nitin Gadkari said on Tuesday. Unveiling the contours of the ₹20-lakh-crore stimulus package, Finance Minister Nirmala Sitharaman had last last week announced a change in the definition of micro, small and medium enterprises (MSMEs). As per the revised definition, any firm with an investment of up to ₹1 crore and turnover under ₹5 crore will be classified as ‘micro.’ A company with an investment of up to ₹10 crore and a turnover of up to ₹50 crore will be classified as ‘small’ and a firm with an investment of up to ₹20 crore and a turnover under ₹100 crore will be classified as ‘medium.’The previous criteria for classifying enterprises in the ‘medium’ category was an investment of up to ₹10 crore and a turnover of up to ₹50 crore. “We have taken a decision to raise the up to ₹20 crore investment (criteria) to up to ₹50 crore and turnover (limit) to up to ₹200 crore. So, we will issue an order for that,” Mr. Gadkari said. The Minister for MSMEs and Road Transport and Highways said he felt the criteria should be based on investment ‘or’ turnover instead of investment ‘and’ turnover as announced, adding that the government ‘will rectify the same.’ Raising limit to ₹250 cr.The Minister said he was also open to considering suggestions regarding enhancing the turnover limit to up to ₹250 crore for medium enterprises, and will take up the matter with the MSME Secretary.Mr. Gadkari said the government planned to raise MSMEs’ contribution to India’s exports to 60% from the 48% at present and also boost the sector’s contribution to the country’s GDP from 29% currently to 50%. “We are planning to create five crore new jobs. Until now, we have created 11 crore jobs,” said the Minister, adding that he was keen on developing Indian MSMEs of international standards. China factor Interacting with representatives from an exporters’ body, he urged them to take advantage of the ‘blessing in disguise’ posed by the global ‘hatred against China’ through cost reduction and encouraging import substitution. Besides, Mr. Gadkari said the government wanted to make bus ports and was also planning to build logistics parks.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper
Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access
Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations
A select list of articles that match your interests and tastes.

Faster pages
Move smoothly between articles as our pages load instantly.

Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.

Briefing
We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

Recent Articles

President Trump Versus Twitter and Social Media

Now, the mods are putting in new guardrails, and he’s upset. He wants what internet trolls and rebels have always wanted: to be...

Are amounts received from medical insurance company taxable? Answers to your personal finance queries

Q. I retired from a government-owned bank in July 2018.My employer has got a medical assistance fund for retirees and their spouses. From...

Business News, Stock/Share Market Investment, Live BSE/NSE Sensex & Nifty, Mutual Funds, Commodity Market, Finance Portfolio Investment/Management, Startup news India, Financial News

By Market Capitalisation. Net Sales. Net Profit. Total Assets. Excise. Other Income. Raw Materials. Power & Fuel. Employee Cost. PBDIT. Interest. Tax. EPS. Investments. Sundry Debtors. Cash/Bank. Inventory. Debt. Contingent Liabilities. Screen Crit Abrasives Aerospace & Defence Agriculture Air Conditioners Airlines Aluminium & Aluminium Products Amusement Parks/Recreation/Club Aquaculture Auto Ancillaries Auto Ancillaries - Air...

IIT Madras’ virtual reality model helps Chennai doctors implant pump in boy’s heart

New Delhi: Among thousands waiting for international travel curbs to be lifted is an 11-year-old Egyptian boy for whom spending the lockdown time...

Coronavirus Continues to Disrupt Prescription Drug Supplies

Two drugs that showed a very different trend were amoxicillin, an antibiotic used to treat bacterial infections, and hydrocodone-acetaminophen, an opioid-containing painkiller that is...

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox