Government changed the definition of micro, small and medium enterprises (MSMEs) as part of the Atma Nirbhar Bharat Abhiyan (self-reliant India) economic relief package. Under the new definition, the distinction between manufacturing and services enterprises has been eliminated. Under the new definition of MSMEs, the investment criteria for such enterprises have been revised upwards, while an additional criterion of turnover has been introduced.
- Enhances ease of doing business
- aligned to new GST regime
- information asymmetry corrected as firms under input tax credit GST regime has incentive to file taxes and thus turnover cant be hidden. reduces monitoring costs.
- Aligned with global standards
Removal of distinction between captive and non-captive mines to allow transfer of mining leases and saleof surplus unused minerals. This will lead to improved efficiency in both mining and production.
- Global tenders to be disallowed up to Rs. 200 crores crores FOR MSMEs
- Use of Fintech is being encouraged to enhance transaction based lending using the data(generated by the e-marketplace.( Fintech refers to computer programs and other technology used to support or enable banking and financial services.)
Under atmanirbhar scgheme
- Quicken payment dues to MSMEs within 45 days
- Subordinate ddebt for MSME (20000cr) to support stressed MSME having NPAs
- Equity funding through FOF(fund of fund) worth Rs 50000cr
- National Infrastructure Pipeline
- FOR MSME
SFURTI – Traditional Industries Infra
Cluster Development Program ® 50 such clusters have been set up
ASPIRE A Scheme for Promoting Innovation and Rural Entrepreneurs
- ZED o Zero Defect, Zero Effect
- For quality improvisation in MSME outputs
- Also focus on cleaner energy
- Technology Acquisition and Development Program
- India Inclusive Innovation Fund o By ministry of MSME
- For developing innovative ideas at the grassroot level
Marketing and exports
- Scheme for Remission of Duties & Taxes on Export Product to replace Merchandise Exports fromIndia Scheme (MEIS) for all goods exported. It will provide more incentives to the exporters thanexisting schemes put together.
- Fully automated electronic refund for exporters