1. MSME new definition

The new definition of Micro, Small, and Medium Enterprises (MSMEs) notified by the Ministry of Micro, Small and Medium Enterprises (MSMED) is set to be applicable from 1st July 2020. The new definition aims to provide relief and support to businesses in the wake of the COVID-19 pandemic.

 

Under the new definition, the criteria for classification of MSMEs have been revised. Micro enterprises will now be defined based on their investment and turnover limits, with a micro enterprise having an investment of up to INR 1 crore and turnover of up to INR 5 crore. Small enterprises will have an investment limit of up to INR 10 crore and turnover of up to INR 50 crore. Medium enterprises will have an investment limit of up to INR 50 crore and turnover of up to INR 250 crore.

 

The revised definition is expected to benefit a larger number of enterprises, as the previous limits were seen as restrictive. It is aimed at promoting ease of doing business, attracting investments, and boosting job creation in the MSME sector.

 

However, there are concerns about the implementation and effectiveness of the new definition. Some argue that the turnover-based criteria may not accurately reflect the scale and potential of a business. There are also concerns about the availability of financial support and resources for MSMEs, especially in light of the economic challenges posed by the pandemic.

 

Overall, the new definition of MSMEs is a significant step towards providing support and relief to businesses in India. However, its true impact will depend on effective implementation, access to resources, and continued efforts to address the challenges faced by the MSME sector.

 

 

 

2. Public opinion on MSME new definition

 

 

Public opinion on the new definition of MSMEs applicable from 1st July 2020, as notified by MSMED, may vary. Some individuals and organizations may support the new definition, believing that it will help streamline and strengthen the MSME sector. They may argue that the revised criteria will ensure that only genuine small and medium enterprises receive benefits and support, preventing larger businesses from taking advantage of the MSME category.

 

On the other hand, there may be criticism and concerns regarding the new definition. Some people may argue that the revised criteria are too restrictive and may exclude many businesses that genuinely need support. They may claim that the investment and turnover limits are set too low, making it difficult for businesses to qualify as MSMEs. Critics may also argue that the new definition does not adequately consider factors such as employment generation and regional disparities.

 

Overall, public opinion on the new MSME definition applicable from 1st July 2020 will depend on individual perspectives and experiences within the business community and general public.

 

 

3. CONCLUSION

In conclusion, public opinion on the new definition of MSMEs applicable from 1st July 2020 may vary. Some individuals and organizations may support the revised criteria, believing that it will help streamline and strengthen the MSME sector by ensuring that only genuine small and medium enterprises receive benefits and support. On the other hand, there may be criticism and concerns that the new definition is too restrictive and may exclude businesses that genuinely need support. Overall, public opinion will depend on individual perspectives and experiences within the business community and general public.

 

4. REFERENCE

1.  "MINISTRY OF AGRO AND RURAL INDUSTRIES" 17 January 2015 at the Wayback Machine. Retrieved on May 1, 2015

2.  Entrepreneurial Development in India. Mittal Publications. 1 January 1990.

3.   "Prime Minister Employment Generation Program ". Ministry of Micro, Small and Medium Enterprises. Retrieved 1 September 2020.