Finance Minister Nirmala Sitharaman in her Wednesday address announced a new definition of MSME by revising investment limits upwards.
She added that low thresholds in MSME definition have created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow. So, the government decided to revise the definition, she added.
Sitharaman added, “There will be no distinction between manufacturing and service units.” She added that necessary amendments to law will be brought about.
Under the new classification, investment of more Rs 1 crore will continue to be called micro, Rs 10 crore and more will be called small; and medium will be enterprises investing more than Rs 20 crore. This move
